The Rule Against Perpetual Administration is a legal principle that seeks to limit the duration of the administration of a trust or estate to prevent indefinite control over property. The primary purpose of this rule is to ensure that assets are managed and distributed within a reasonable timeframe, thus avoiding situations where property may be held in limbo for an extended period.
Historically, this rule stems from the broader concept of the Rule Against Perpetuities, which prevents property interests from being held indefinitely. In the context of estate administration, the Rule Against Perpetual Administration mandates that the administration of an estate, including the settling of debts, distribution of assets, and resolution of any disputes, must occur within a specified time frame. This timeframe is often set by state law or determined by the terms of the trust or will.
In practice, if an estate or trust is left open for an unreasonable period, beneficiaries may petition the court for closure, arguing that perpetual administration is contrary to the intent of the decedent and undermines the efficient transfer of assets. For example, if a trust created by a decedent remains unadministered for decades without justification, beneficiaries may seek judicial intervention to compel the trustee to distribute the assets, thereby enforcing the Rule Against Perpetual Administration.
In Texas, the Rule Against Perpetual Administration aligns with state statutes that encourage timely resolution of estates and trusts, promoting accountability among fiduciaries.
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