Legal Definitions - life in being

The term life in being refers to any individual who is alive at the precise moment a future property interest is created. This person's lifespan, plus an additional 21 years, serves as the maximum time limit for that future interest to become fully certain and legally effective, according to a legal principle known as the Rule Against Perpetuities.

Essentially, a "life in being" acts as a measuring stick for time. The individual does not need to have any direct claim or interest in the property themselves; their existence merely provides a reference point for determining how long a future interest can remain uncertain before it must "vest" (become definite and owned by someone).

Here are some examples to illustrate this concept:

• Example 1: A Will with a Conditional Gift

  Imagine a will that states: "I leave my family farm to my daughter, Alice, for her lifetime. After Alice's death, the farm shall pass to the first of my grandchildren to graduate from law school." When the person who made the will (the testator) passes away, Alice is alive. In this scenario, Alice is a life in being. The Rule Against Perpetuities requires that the interest in the farm must become certain (i.e., a grandchild must graduate from law school) within 21 years after Alice's death. If no grandchild graduates from law school within that period, the gift might fail.

• Example 2: A Deed Creating a Future Interest in Land

  Consider a property owner who executes a deed stating: "I grant this parcel of land to my son, Ben, for his life, and upon Ben's death, to the children of my neighbor, Carol, who are alive at the time of Ben's death." When this deed is signed and delivered, Ben and Carol are both alive. Ben is a life in being. The interest for Carol's children must vest (become certain who owns it) within 21 years after Ben's death. The fact that Carol is also alive is relevant, but Ben's life is the one directly tied to the vesting of the interest for his children.

• Example 3: A Trust with a Future Charitable Condition

  A donor establishes a trust that specifies: "The income from this fund shall be paid to my nephew, David, for his life. Upon David's death, if the local animal shelter has successfully raised $1 million in new donations, the principal shall be distributed to the animal shelter. Otherwise, it goes to my alma mater." When the trust is created, David is a life in being. The condition for the animal shelter (raising $1 million) must be met, and the interest must become certain (either going to the shelter or the alma mater), within 21 years after David's death. David's life provides the measuring period for this future condition to be fulfilled.