Who Killed the Rule Against Perpetuities?

McCouch, Grayson M. P.

Abstract

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Who Killed the Rule Against Perpetuities?

Grayson M. P. McCouch

University of Florida Levin College of Law

January 18, 2013

Pepperdine Law Review, Vol. 40, No. 5, 2013
San Diego Legal Studies Paper No. 13-106

Abstract:
This article examines the relationship between the federal wealth transfer taxes and the rule against perpetuities. The decline of the RAP is often attributed primarily to the GST tax amendments enacted in 1986. However, while perpetual trusts were available long before 1986, their estate tax avoidance possibilities were not widely used. Even after 1986, simple repeal of the RAP leaves perpetual trusts exposed to potential estate taxation. In addition, settlors should consider non-tax considerations in assessing the attractions of perpetual trusts.

Number of Pages in PDF File: 21

Keywords: Estate Tax, Generation Skipping, Perpetuities, Dynasty Trusts, Perpetual Trusts

JEL Classification: K34

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Date posted: January 22, 2013

Suggested Citation

McCouch, Grayson M. P., Who Killed the Rule Against Perpetuities? (January 18, 2013). Pepperdine Law Review, Vol. 40, No. 5, 2013; San Diego Legal Studies Paper No. 13-106. Available at SSRN: http://ssrn.com/abstract=2204678

Contact Information

Grayson M. P. McCouch (Contact Author)

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States