Valerie
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- Sep 17, 2008
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By year-end 2005, twenty-one states had validated perpetual trusts by abolishing the Rule Against Perpetuities (the Rule or the RAP) as applied to interests in trust. 1 On one view, these states responded to demand by donors for perpetual control independent of tax considerations. If so, the perpetual trust might be reckoned as the modern counterpart to the fee tail and strict settlement, 2 another effort by one generation to control the disposition of the family patrimony by subsequent generations. On the other hand, as is so often the case in the development of estate planning techniques, tax incentives may be the root cause of the rise of the perpetual trust. The 1986 enactment of the generation skipping transfer (GST) tax conferred a specific and salient tax advantage on long-term trusts, and nearly all of the states that have abolished the Rule did so after 1986. Proponents of both views have adduced supporting anecdotal evidence.
https://litigation-essentials.lexis...cid=3B15&key=83a3eb93c217e89ccb00a44ccd0dad13
https://litigation-essentials.lexis...cid=3B15&key=83a3eb93c217e89ccb00a44ccd0dad13