Transgressive Trust: A Deep Dive into Its Legal Definition and Impact

Q: How can I avoid creating a transgressive trust?

Work with a legal professional to ensure that your trust complies with the rule against perpetuities by clearly defining beneficiaries and their interests.

Q: Are all trusts subject to the rule against perpetuities?

No, only certain types of trusts may be affected by this rule, particularly those that involve future interests.

Definition & Meaning

Transgressive trust is a type of trust that contravenes the rule against perpetuities. This legal principle prohibits the establishment of an estate if it is uncertain who will inherit a future interest within 21 years after the death of a person alive at the time the interest was created. The rule is designed to manage future interests in property, particularly real estate, ensuring that ownership can be determined within a specific timeframe.

Table of content

Legal Use & context

Transgressive trust is primarily used in estate planning and property law. Legal professionals encounter this term when dealing with trusts that may extend beyond the allowed timeframe for determining beneficiaries. Understanding transgressive trusts is crucial for ensuring compliance with property laws and for effective estate management. Users can utilize legal templates from US Legal Forms to create trusts that adhere to legal standards.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A trust is created that states that property will be passed to grandchildren but does not specify which grandchildren will inherit until the death of the last grandparent. This could violate the rule against perpetuities if it cannot be determined who will inherit within the specified timeframe.

(hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Rule Against Perpetuities
California	Follows a 90-year rule instead of the traditional 21 years.
New York	Adheres to the common law rule, allowing interests to vest within 21 years.
Florida	Has adopted a statutory alternative that allows for longer vesting periods.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Difference
Perpetuity	A condition that lasts indefinitely.	Transgressive trust violates the perpetuity rule by extending beyond the allowed timeframe.
Trust	A legal arrangement where one party holds property for the benefit of another.	Transgressive trust specifically refers to those that breach the rule against perpetuities.

Common misunderstandings

What to do if this term applies to you

If you believe a transgressive trust may apply to your situation, consider seeking legal advice to understand your options. You can also explore US Legal Forms for templates that help you create compliant trusts. If your situation is complex, consulting a legal professional is advisable.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Typical fees: Varies by attorney and complexity of the trust.
Jurisdiction: Applicable in all states, but rules vary.
Possible penalties: Invalidity of the trust if it violates the rule against perpetuities.

Key takeaways

Frequently asked questions

What is a transgressive trust?

A transgressive trust is one that violates the rule against perpetuities by failing to clearly define future beneficiaries within a specified timeframe.