Legal Definitions - perpetuity

Perpetuity generally refers to something that continues indefinitely or forever. In a legal context, particularly in property law, the concept of perpetuity is crucial because legal systems often aim to prevent property from being controlled by past generations indefinitely. This principle is primarily addressed by the Rule Against Perpetuities.

The Rule Against Perpetuities is a common law principle designed to ensure that property interests become fully owned and transferable within a reasonable timeframe. It prevents property from being tied up in complex future conditions for an excessively long period. Essentially, it states that a future interest in property must "vest" (become certain and absolute) no later than 21 years after the death of someone who was alive when the property interest was created.

Here are some examples illustrating the concept:

• Example 1: A Conditional Gift in a Will

  A will states: "I leave my vacation home to my daughter, Sarah. However, if any of her great-grandchildren ever decide to become a professional musician, then the home must be sold, and the proceeds given to a specific music charity."

  Explanation: This clause attempts to impose a condition on the property far into the future, potentially long after Sarah and anyone alive at the time the will was written has passed away. The condition for the sale and transfer of proceeds might not occur for many generations, if at all. The Rule Against Perpetuities would likely invalidate this future interest because it attempts to control the property's destiny too far into the future, preventing it from becoming fully vested and freely transferable within the legally prescribed period.

• Example 2: A Long-Term Land Restriction

  A property developer sells a plot of land with a deed restriction stating: "This land shall never be used for commercial purposes, and if it ever is, ownership shall automatically transfer to the descendants of the original developer, generation after generation, forever."

  Explanation: This restriction attempts to create a future interest (the automatic transfer of ownership) that could potentially last in perpetuity. The condition for the transfer might not be triggered for hundreds of years, if ever. The Rule Against Perpetuities would likely deem this future interest invalid because it seeks to control the property's use and ownership indefinitely, preventing it from vesting within the legal timeframe and hindering its free alienability (the ability to be sold or transferred without restriction).