Financial Planner

Answer: A - Rules of perpetuities are concerned with time periods for a trust to terminate and be distributed. To satisfy the requirement of the rule, an interest must vest within 21 years after the death of someone at the moment of the transferor into an irrevocable trust. The interest must vest or fail to vest no later than 21 years after some life in being at the creation of the interest. A violation of the rule will cause the particular interest to be void and revert to the transferor or the transferor’s successors. The rule does not take a wait-and-see approach; it does not allow us to wait and see whether any grandchildren are born after the grantor’s death.