Who Killed the Rule Against Perpetuities?

21 Pages Posted: 22 Jan 2013

See all articles by Grayson M.P. McCouch

Grayson M.P. McCouch

University of Florida Levin College of Law

Date Written: January 18, 2013


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.

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

JEL Classification: K34

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: https://ssrn.com/abstract=2204678

Grayson M.P. McCouch (Contact Author)

University of Florida Levin College of Law ( email )

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

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