Rule Against Perpetuities
Certain limitations were created to prevent property from being held in a trust indefinitely. The rule prevents the transferor of property from controlling the disposition of the property for unreasonably long periods of time while in the trust, commonly known as "ruling from the dead."

The rule states that: Interest in the property must vest no later than 21 years and 9 months once the trust becomes irrevocable.

Uniform Statutory Rule Against Perpetuities:
Several individual states have adopted the "uniform statutory rule against perpetuities" which extends the original rule of perpetuities out to 90 years.

Estate and Gift Taxation
The estate-gift tax exemption amount is $5,250,000 per person (or $10.5 million per couple) with a top estate tax rate of 40% should an estate exceed those amounts.
Assets retained in revocable trusts are included as part of the gross estate for estate tax purposes- because the grantor retained control of the assets, they are still considered as assets of their estate. Irrevocable trusts can pass free of estate taxation if the grantor (creator) has given up all incidences of ownership.  
 

Grantor Retained Annuity Trusts

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