Understanding the Uniform Statutory Rule against Perpetuities Act

Definition & Meaning

The Uniform Statutory Rule against Perpetuities Act is a legal framework designed to limit the duration of certain property interests. Drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 1986 and amended in 1990, this act aims to invalidate property interests that cannot be determined within a specified timeframe. By doing so, it addresses the complexities and burdens associated with the traditional common-law rule against perpetuities while maintaining its fundamental policy objectives. This act has been adopted by numerous states across the U.S., including New York and the Virgin Islands in 2010.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A trust is created to benefit a grandchild, but the trust stipulates that the grandchild must wait until they turn thirty to receive their inheritance. Under the Uniform Statutory Rule against Perpetuities, if the grandchild's interest cannot be established within a certain timeframe, the trust may be invalidated.

(hypothetical example)

State-by-state differences

State Adoption Year Comments
New York 2010 Adopted the act, aligning with its provisions.
Virgin Islands 2010 Also adopted the act, providing clarity in property interests.

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

What to do if this term applies to you

If you are involved in estate planning or managing property interests, it is essential to understand how the Uniform Statutory Rule against Perpetuities may affect your situation. Consider consulting a legal professional for personalized advice. You can also explore US Legal Forms for templates that can help you draft necessary documents in compliance with this act.

Quick facts

  • Drafted by NCCUSL in 1986.
  • Amended in 1990 with additional provisions.
  • Adopted by multiple states, including New York and Virgin Islands in 2010.
  • Affects property interests and estate planning.

Key takeaways

Frequently asked questions

Its purpose is to invalidate property interests that cannot be determined within a specified timeframe, preventing indefinite ownership claims.