To compete for trust assets following a change in the federal tax code, many states repealed or abrogated the Rule Against Perpetuities (RAP). By repealing the RAP, these states allow a settlor to create a trust that lasts forever: a “dynasty trust” or “perpetual trust.” The motivation for creating such trusts varies. Some settlors may have dynastic desires. More often, settlors use perpetual trusts to minimize taxes. Regardless, settlors have embraced perpetual trusts, with an estimated $100 billion in trust assets moving into the seventeen states that abolished the RAP as of 2003. In his thoughtful article, Trust Term Extension, Reid Kress Weisbord asks a related question that may arise as a result of these recent developments: “[C]ould the duration of a trust settled in a jurisdiction governed by the Rule Against Perpetuities be extended indefinitely after the jurisdiction’s repeal of the Rule Against Perpetuities?” Read More.
September 2016, Vol. 68, No. 5
Leslie C. Levin, Lawyers Going Bare and Clients Going Blind
Aya Gruber, Amy J. Cohen, & Kate Mogulescu, Penal Welfare and the New Human Trafficking Intervention Courts
Caprice Roberts, Supreme Disgorgement
Anthony Jose Sirven, Undue Process: A Father's Proprietary Interest in an Embryo and Its Clash with Casey
Maris Snell, Section 875C: Not for All Intents and Purposes