TRUST PERIOD

The period during which a trust can remain in effect before its assets are disposed of. The general rule is that property must be capable of transference of ownership and that the owner of property must not be able to tie up the disposal of property indefinitely. The rule against perpetuities was therefore devised to prevent this, and it operates to render void any future interest that will not vest within the stipulated period. The period can be a specific number of years as set out in the appropriate jurisdiction's legislation or alternatively, a period not exceeding a life in being (not necessarily connected with the trust) plus 21 years (see Royal Lives Clause ).