Perpetual Trusts: May Not Be Perpetual

A Harvard Law School professor, Robert H. Sitkoff, has written an academic paper arguing that perpetual trusts may be unconstitutional under various state’s Constitution.

According to , Gretchen Ertl, in the paper, “Unconstitutional Perpetual Truts,” which will appear in the next issue of The Vanderbilt Law Review, Mr. Sitkoff and his co-author, Steven J. Horowitz, an associate at Sidley Austin, argues that legal challenges to these trusts could come from two sources: 1) creditors in a state where the trusts are unconstitutional who are seeking ways to maximize their settlements and view the trusts as large sources of money, and 2) descendants who want to break the trust and get their money now and without strings attached.

For more information, please see: Gretchen Ertl, New York Times, “The Ins and Outs of Trusts That Last Forever,” Dec. 5, 2014.

Posted by Theodore H. Waggner, Esq., Associate Editor, Wealth Strategies Journal