The rule against perpetuities (RAP) is a complex, yet vitally important, principle in estate planning that limits how long a trust can exist and control property. Essentially, it prevents individuals from controlling property from beyond the grave for an unreasonably long period, ensuring that ownership eventually vests in someone. While it sounds archaic, stemming from 17th-century English common law, it remains relevant today to ensure property isn’t tied up in legal limbo indefinitely. The basic premise is that an interest must vest, if at all, no later than 21 years after the death of someone alive when the trust was created – a “life in being plus 21 years.” This means the trust’s provisions can’t indefinitely postpone the determination of who owns the property.
How Does the Rule Against Perpetuities Impact My Trust?
Many people don’t realize how deeply the RAP can affect their estate plans. A common issue arises with “wait-and-see” trusts, where a beneficiary needs to meet certain conditions before receiving an inheritance – perhaps graduating college or reaching a specific age. If these conditions take too long to fulfill – extending beyond the “life in being plus 21 years” window – the trust provision could be deemed invalid, potentially leading to unintended consequences. Approximately 60% of estate plans initially drafted without specific RAP considerations require some level of adjustment to ensure compliance. This isn’t about limiting generosity; it’s about ensuring your wishes are legally enforceable and don’t get thrown out by a court. It’s a bit like building a bridge – you need solid foundations to ensure it can withstand the test of time, and in this case, that foundation is legal compliance.
Can I Use a Savings Clause to Protect My Trust?
Fortunately, there are ways to mitigate the risk posed by the RAP. One of the most common methods is incorporating a “savings clause” into the trust document. This clause essentially states that if any provision of the trust would violate the RAP, that provision is automatically modified to be valid, even if it means shortening the duration of the trust or altering the distribution schedule. A well-drafted savings clause is a crucial safety net. Think of it like insurance—you hope you never need it, but it’s there to protect you when unexpected problems arise. Without a savings clause, a seemingly harmless provision could lead to unintended consequences. In California, the statutory period for RAP has been extended to 90 years, offering some flexibility, but a savings clause still provides an extra layer of protection.
What Happened When Old Man Hemlock Didn’t Plan Ahead?
I once worked with a client, Old Man Hemlock, a rather eccentric gentleman who insisted his trust include a provision that his prized stamp collection be given to his great-great-grandchild only *if* that child became a renowned philatelist – a collector of stamps. He wanted to ensure the collection remained in the family and was truly *appreciated*. Unfortunately, he didn’t consider the RAP. Decades passed, and the great-great-grandchild was born, but they showed no interest in stamps. Because of the overly restrictive and long-term condition, the trust provision was deemed invalid, and the stamp collection ended up being sold to satisfy creditors. It was a heartbreaking outcome for his family, all because a single clause wasn’t properly vetted against the rule against perpetuities.
How Did the Millers Secure Their Family Legacy?
The Millers, a lovely couple with a multi-generational family farm, came to me concerned about preserving their land for future generations. They wanted to create a trust that would allow their grandchildren to live and work on the farm, but they were worried about the complexities of estate planning and the potential for the RAP to invalidate their wishes. We worked together to create a trust with a comprehensive savings clause and carefully worded provisions. The trust allowed the grandchildren to benefit from the farm as long as they actively participated in its operation, and we established a clear mechanism for determining that participation. Years later, I received a letter from their grandson, thanking me for helping his family preserve their legacy. The farm continues to thrive, and the Millers’ vision has been successfully carried out, demonstrating the power of thoughtful estate planning and the importance of addressing issues like the rule against perpetuities.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- pet trust
- wills
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- estate planning attorney near me
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Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
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Feel free to ask Attorney Steve Bliss about: “What’s the best way to leave money to minor children?” Or “How is probate different in each state?” or “What are the disadvantages of a living trust? and even: “What happens to joint debts in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.