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Jun 29, 2021 · O.C.G.A. § 44-6-200 through § 44-6-206 is Georgia’s “Uniform Statutory Rule Against Perpetuities.” Currently, a non-vested interest in property, including interests in trusts, must vest within 360 years .
- Let’s Start by Breaking Down The Text of The Rule
- Putting It Together
- Rap in Action
Interest
“Interest” refers to a property interest, such as a fee simple or life estate. However, the RAP doesn’t apply to such simple interests as these, since they normally vest immediately (we’ll get into that later). Rather, there is a certain kind of interest to which the RAP applies: future interests. The most notable of these are “contingent remainders” and “executory interests” (the lesser used of these interests include “interests subject to open,” “rights of first refusal,” “options to purcha...
Must vest, if at all
The best way that I’ve found to understanding this is to think of “vesting” as a game of catch. The “ball” is the property interest, and it vests when it reaches the hands of a known, ascertained person. The RAP requires that the ball reach someone, for certain, within the time limits (life plus 21 years). If there’s even a remote possibility that this won’t happen, the property transfer violates the RAP.
No later than 21 years after some life in being
21 years is simple enough to understand. However, “life in being” is a bit trickier. It’s easier to understand with the added “at the creation of the interest” at the end. In short, you simply look at which life or lives are “in being” (i.e. in existence and ascertainable) at the time of the creation of the interest. Going back to the “game of catch” analogy, the person throwing the ball (the original grantor) musthave a final recipient that is objectively identifiable at the time that the ba...
The first step in determining whether the RAP applies is figuring out whether the interest at issue is a future interest, and, if so, whether it is a contingent remainder or executory interest (unless your test examiner is exceedingly cruel and uses another form of future interest, in which case, you should look elsewhere for help). If the RAP does...
Here’s an example to better help understand: A conveys Blackacre to B and her heirs as long as tobacco is never grown on the property. But if tobacco is ever grown on the property, then to C and his heirs. C’s property interest violates the RAP. True, it’s possible that tobacco may be grown on Blackacre only six months after the interest was create...
Oct 24, 2023 · The rule against perpetuities is a legal principle many states use to prevent someone from controlling property long after they die. [1] Generally, control over a property can’t extend more...
- Dalia Ramirez
Nov 8, 2022 · The rule against perpetuities stipulates that a will, estate plan or other legal document intending to transfer property ownership more than twenty-one years after the death of the primary recipient is void.
Aug 22, 2018 · However, irrevocable trusts can now be modified, or, possibly, even terminated, pursuant to: (1) the terms of the trust agreement itself; (2) judicial modification; (3) non-judicial settlement...
- Richard M. Morgan
Rule against perpetuities where estate is limited on alternative contingencies, one within and one beyond the period allowed by the rule, 98 A.L.R.2d 807. Modern status of presumption against possibility of issue being extinct, 98 A.L.R.2d 1285.
TITLE 44 - PROPERTY. CHAPTER 6 - ESTATES. ARTICLE 9 - UNIFORM STATUTORY RULE AGAINST PERPETUITIES. § 44-6-200 - Short title. § 44-6-201 - Validity of nonvested property interest or power of appointment. § 44-6-202 - Time of creation of nonvested property interest or power of appointment.
