Legal Definitions - lives in being

The legal term lives in being refers to specific individuals who are alive at the precise moment a legal document, such as a will or a trust, becomes legally effective. These individuals serve as a measuring stick to determine the maximum duration for which certain future interests in property can be delayed or made conditional. This concept is fundamental in property law, particularly within the Rule Against Perpetuities, which prevents property from being tied up indefinitely by past generations, ensuring it eventually becomes fully transferable.

Here are some examples to illustrate this concept:

• Example 1: A Family Trust for Future Generations

  Imagine a wealthy individual, Mr. Chen, creates a trust fund for his future descendants. The trust specifies that the principal of the fund will be distributed to his great-grandchildren only after the death of his last surviving child who was alive when Mr. Chen created the trust. In this scenario, Mr. Chen's children who were alive at the time the trust was established are the lives in being. Their lifespans define the maximum period before the great-grandchildren can fully inherit the trust's principal.

• Example 2: Conditional Grant of Real Estate

  Consider a situation where Ms. Rodriguez owns a large parcel of land. She executes a deed stating that the land will be transferred to a local conservation society, but only after all of her currently living grandchildren have passed away. The grandchildren who are alive at the moment Ms. Rodriguez signs and delivers the deed are the lives in being. Their collective lifespans determine the maximum time the conservation society must wait before gaining full ownership of the property.

• Example 3: Inheritance Dependent on Existing Relatives

  A will might state that a valuable antique collection is to be held by a trustee and eventually given to the testator's first great-grandchild to graduate from college, but only after all of the testator's nieces and nephews who were alive at the time of the testator's death have passed away. Here, the nieces and nephews who were alive when the testator died are the lives in being. Their existence sets the outer limit for how long the distribution of the antique collection can be postponed, even if a great-grandchild graduates earlier.