Tony Billings accepted for publication in Tax Notes
Mike Ilitch School of Business Professor of Accounting Tony Billings has been accepted for publication in Tax Notes, which is a portfolio of publications with a large readership of practitioners, academics and policymakers alike.
The article, titled “R.I.P. R.A.P? Succession Planning in 2022 and Beyond,” was co-authored by Sarah Hinchliffe (Long Island University).
A person who seeks to set up a Dynasty Trust (Perpetual Trust or donative family trust) may encounter a little-known spanner-in-the-works referred to as the Rule Against Perpetuities (RAP). The common law origins of this rule rest in seventeenth-century England and state that “an interest is valid only if it must vest within a life or lives in being plus 21 years.” The Rule essentially guards the grantor's interests of a trust and prevents unknown future generations or potential beneficiaries from obtaining a beneficial interest. The Rule became of interest in several U.S. states, which either statutorily adopt (in whole or part) or abolish the RAP application. This article looks at the present and ongoing relevance of the Rule in 2022.