What is the rule against perpetuities designed to prevent?

The rule against perpetuities is designed to prevent the indefinite control of property in the future. This legal principle establishes a time limit on how long property interests can be held, ensuring that any future interests must vest, if at all, within a certain period, typically measured by the lives of individuals alive at the time the interest is created plus a set number of years, often twenty-one. The underlying purpose of this rule is to promote the free transferability of property and prevent property from being tied up for generations, which can hinder its development and use.

By enforcing a timeframe for the vesting of interests, the rule safeguards the ability of current owners to utilize and manage their property without being subject to the wishes of previous generations who might want to condition ownership on certain future events or the behavior of future beneficiaries. This forward-looking approach encourages a dynamic and flexible real estate market, thus preventing stagnation and complications associated with long-term conditions placed on property.