Validating life in rule against perpetuities
) requires that all future interests must vest within any lifetime of a person living at the time the interest is created plus 21 years.The purpose for the rule is the reason for limiting dead hand control, so that dead hand control does not persist indefinitely, where it cannot respond to current events that may result in the inefficient allocation of economic resources. The efficient allocation of resources requires that property be put to its best use, which is determined economically by who is willing to pay the highest price for it.In essence, the law seeks to prevent dynastic property whose transfer is restricted by the wishes of someone who has been dead for hundreds of years.The rule applies to executory interests and contingent remainders.The originator of the future interest cannot foresee these changes, and, hence, cannot know the best use of the property.The RAP does not require that a future interest must vest, but only that it cannot vest after the perpetuities period.The interest that the children possess is known as a future interest.
The courts developed the rule during the seventeenth century in order to restrict a person's power to control perpetually the ownership and possession of his or her property after death and to ensure the transferability of property.
For example, if Donald Smith transfers his real property to his son Howard for life and then to Howard's children who are alive at the time of Howard's death, the children's interest is not vested.
Their interest is subject to the condition precedent that they survive their father Howard.
The law is applied differently or not at all, and even contravened, in various jurisdictions and circumstances.
Stated more formally, the common law rule against perpetuities forbids some future interests (traditionally contingent remainders and executory interests) that may not vest within the time permitted; the rule "limits the ability of a decedent to exercise dead hand control over property, which the state wishes to be alienable.