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Full-Text Articles in Law

Us Perpetual Trusts, Lawrence W. Waggoner Jan 2011

Us Perpetual Trusts, Lawrence W. Waggoner

Articles

In 2009, the UK reconfirmed tis long-standing public policy against perpetual trusts. America has been moving in the opposite direction. Recent years have seen a movement in the states to pass legislation allowing settlors to create family trusts that can last forever or for several centuries. Sadly, and embarrassingly, the American perpetual-trust movement has not been based on the merits of removing the traditional curb on excessive dead-hand control. The policy issues associated with allowing perpetual trusts have not been seriously discussed in the state legislatures. The driving force has been interstate competition for trust business.


Colorado Revisits The Rule Against Perpetuities, Wayne M. Gazur Jan 2006

Colorado Revisits The Rule Against Perpetuities, Wayne M. Gazur

Publications

The 2006 Colorado General Assembly passed legislation adopting a 1000-year limitation applicable to interests in trust, practically eliminating the Rule Against Perpetuities ("RAP"). This article discusses the legislation's impact on the RAP in trust and non-trust situations.


Perpetual Trusts And The Settlor's Intent, Joshua C. Tate Jan 2005

Perpetual Trusts And The Settlor's Intent, Joshua C. Tate

Faculty Journal Articles and Book Chapters

In recent years, a number of American states have abolished the Rule Against Perpetuities, allowing for the creation of perpetual dynasty trusts. Some scholars have suggested that these states should also pass statutes making it easier for beneficiaries and trustees to undo a perpetual dynasty trust after the settlor has died. This article makes use of a novel source of empirical evidence - websites created by estate planners to entice clients to set up dynasty trusts - to show that settlors' goals would be frustrated by the proposed legislation.


The Rise Of The Perpetual Trust, Jesse Dukeminier, James E. Krier Jan 2003

The Rise Of The Perpetual Trust, Jesse Dukeminier, James E. Krier

Articles

For more than two centuries, the Rule against Perpetuities has served as the chief means of limiting a transferor's power to tie up property by way of successive contingent interests. But recently, at least seventeen jurisdictions in the United States have enacted statutes abolishing the Rule in the case of perpetual (or near-perpetual) trusts. The prime mover behind this important development has been the federal Generation-Skipping Transfer Tax. This Article traces the gradual decline of the common law Rule against Perpetuities, considers the dynamics behind the recent wave of state legislation, examines the problems that might result from the rise …