What is the term for the rule that prohibits vesting of future interests beyond a life in being plus 21 years?

What is the term for the rule that prohibits vesting of future interests beyond a life in being plus 21 years?

• A. Remainder
• B. Rule Against Perpetuities
• C. Tenancy for Years
• D. Periodic Tenancy

Answer: (B)

The Rule Against Perpetuities set the time limit for when a future interest can vest. It says no interest can vest later than the end of a life in being at the creation of the interest, plus 21 years. This is why the term described is called the Rule Against Perpetuities. A remainder is a type of future interest that can be governed by this rule, but the rule itself isn’t a remainder. The other options describe types of interests or leases rather than the rule about timing of vesting.

The Rule Against Perpetuities set the time limit for when a future interest can vest. It says no interest can vest later than the end of a life in being at the creation of the interest, plus 21 years. This is why the term described is called the Rule Against Perpetuities. A remainder is a type of future interest that can be governed by this rule, but the rule itself isn’t a remainder. The other options describe types of interests or leases rather than the rule about timing of vesting.