Short History

Sometimes, statutes are written to satisfy both proponents and opponents of a law.  Minnesota’s Rule Against Perpetuities is a case in point.  A short history lesson best illustrates the concept.

In the late 1500s, the Duke of Norfolk created a trust to protect family property for his oldest son, who lacked capacity and was unable to own assets outright.  The Duke transferred all of his property to the trust and prohibited the trustee from selling any of it, thereby indefinitely removing the property from commerce.  This trust arrangement created controversy because some people did not believe that property should be encumbered with such restrictions that would last for generations.  After many years of litigation, the case was decided with the court issuing what is now known as the “rule against perpetuities”, which limited the amount of time that property could be held in trust to about 100 years.

As of August 1, 2025, Minnesota’s Rule Against Perpetuities (RAP) increases from 90 years to 500 years.  (Minnesota Statutes Section 501A.01(2025)).  Trusts created prior to August 1, 2025, will remain governed by the 90-year vesting rule.

How does the new law impact you?

 In general, a longer RAP period gives you more estate planning flexibility.  For example, you may wish to leave an inheritance to people who are not yet born (and who may never exist) or to make a gift…with certain legal conditions attached.  Or, you may want to plan to keep a property in the family for many generations.  Further, you may decide to use one or more trusts to plan to minimize or avoid estate tax at death.  If so, Minnesota’s new, longer, Rule Against Perpetuities will aid you in your planning. As always, for any of your estate planning or elder law needs, feel free to contact one of Henningson & Snoxell, Ltd.’s estate planning and elder law attorneys: Susan T. Peterson-Lerdahl, Adam J. Kaufman, Eric J. Lilly, David T. Estle, and Rachell L. Henning.