The ABCs of Estate Planning: R is for Rule Against Perpetuities
R is for RULE AGAINST PERPETUITIES. Ever see the film “Body Heat”? The lawyer played by William Hurt makes an error when he fails to take into account the rule against perpetuities in a will he drafts. This means that no asset can be held in trust or otherwise indefinitely. It must be distributed at a time not later than the end of a life in being at the time of the decedent’s death (usually a grandchild or great-grandchild) plus 21 years.