Rule Against Perpetuities – Glossary

Trust Terms

A legal rule that limits how long property can be held in a trust before it must vest in someone. Arizona allows up to 500 years.

The rule against perpetuities prevents property from being locked in a trust forever. It limits how long a property interest can stay nonvested. No specific person has full ownership yet.

Arizona's Modern Approach

Arizona adopted the Uniform Statutory Rule Against Perpetuities. It is found in A.R.S. 14-2901 through 14-2906. A nonvested interest is valid if it meets any of three tests:

It is certain to vest or end within 21 years of a measuring life
It vests or ends within 500 years of its creation
The trustee can sell trust assets and certain beneficiaries can end the interest

The 500-year window gives families great flexibility. This includes dynasty trusts designed for many future generations.

What Happens If a Trust Violates the Rule

Under A.R.S. 14-2903, a court does not void a trust provision that breaks the rule. Instead, the court reshapes it to match the creator's plan as closely as possible. This "fix it, don't kill it" approach protects families from technical errors.

A.R.S. 14-2906 confirms Arizona's rule fully replaces the old common law rule. It provides one clear standard for all trusts created on or after December 31, 1994.