The GST Tax Tail is Killing the Rule Against Perpetuities
Ira Mark Bloom
Albany Law School
Tax Notes, Vol. 87, No. 4, 2000
This Article examines the affect the generation-skipping transfer (GST) tax system has on the Rule against Perpetuities. The author asserts that the Rule Against Perpetuities is being repealed by states not because it is an ancient rule which no longer serves any social policy, but rather so that wealthy individuals will be able to create perpetual dynasty trusts to exploit the GST tax system. This Article shows that states, in the blind race to facilitate the exploitation of the GST exemption by perpetual dynasty trusts, have overlooked the non-tax societal reasons for some rule against perpetuities. The author evaluates the positive and negative consequences of the perpetuities repeal movement, concluding that the GST tax tail is sadly killing a vitally important societal rule that limits unacceptable control by the dead hand.
Number of Pages in PDF File: 8
Keywords: GST tax tail, generation-skipping transfer tax system, Rule against Perpetuities, Repeal, perpetual dynasty trustsAccepted Paper Series
Date posted: February 1, 2010
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 0.812 seconds