What is a life in being rule against perpetuities?

Terms: Rule Against Perpetuities: The rule that provides that certain future interests must vest, if at all, within 21 years after the death of a life in being at the time that the interest is created.

What is a life in being?

Legal Definition of life in being : the life of a particular person (as a lineal descendant) in existence at the time of the creation of a deed or trust or at the time of a testator’s death the interest must vest by the end of lives in being plus 21 years — see also rule against perpetuities.

What is a validating life?

Validating Life (aka Measuring Life) A person who allows you to prove that the contingent interest will vest or fail within the life of that person, or at the death of that person, or within 21 years after that person’s death. This person will be causally connected to the vesting or failing of the contingent interest.

Who can be a life in being?

Life in being means the remaining life of a person who is in existence at the time when a deed or will takes effect. This phrase is mainly used in common law and statutory rules against perpetuities. This common law doctrine limits a person’s power to control the ownership and possession of property.

What does measuring life mean?

Measuring life means the period over which a jackpot or second-level annuitized prize is paid out. For each winning ticket, the measuring life shall be the natural life of the individual determined by the commission to be a valid prize winner.

What a measuring life is as related to a life estate?

At the death of the holder, the property reverts back to the owner. Most often, as in the life estate discusses in the last example the “measuring life” will be that of the recipient. However, this need not be the case. A life estate can be measured by any life in existence at the time that the interest is created.

Who is the measuring life in an annuity?

2. The annuitant is the individual—and it must be an individual, a human being—who may or may not also be the owner of the policy. The age and sex of the annuitant determine— for life annuities—the amount of each annuity payment. The annuitant is merely the measuring life for purposes of annuity payment calculations.

What happens to a trust after 21 years?

Commonly referred to as the “21 year rule,” the rule deems certain types of trusts to dispose of their capital property and recognize the accrued gains every 21 years. Without this rule, trusts could be used to defer the realization of a capital gain for more than 21 years (80 years in BC).