[amp_mcq option1=”Rule against perpetuity” option2=”Transfer to take effect on failure of prior interest” option3=”Direction of accumulation” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is (d), all of the above.<\/p>\n
The rule against perpetuity is a common law rule that prevents a person from transferring property so that it cannot be enjoyed by anyone for a period longer than a life in being plus 21 years. The rule is designed to prevent landowners from tying up land indefinitely and to ensure that property is used and enjoyed by people who are alive.<\/p>\n
A transfer to take effect on failure of prior interest is a type of transfer that takes effect only if the prior interest fails. For example, if a person leaves a gift to their child, but the child dies before the person, the gift will then go to the person’s grandchild.<\/p>\n
A direction of accumulation is a type of transfer that directs that the income from property be accumulated for a period of time before it is distributed. For example, a person may leave a gift of property to their child, but direct that the income from the property be accumulated for the child’s education.<\/p>\n
In the case of a transfer of property for the benefit of the public, all of these restrictions are lifted. This is because the public is considered to be a perpetual body, and so there is no risk that the property will be tied up indefinitely. Additionally, the public is considered to be a worthy beneficiary, and so there is no need to protect the property from being used for frivolous or wasteful purposes.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rule against perpetuity” option2=”Transfer to take effect on failure of prior interest” option3=”Direction of accumulation” option4=”All of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3730","post","type-post","status-publish","format-standard","hentry","category-law","no-featured-image-padding"],"yoast_head":"\n