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.