Beneficiaries of a trust must be definite and ascertainable within the perpetuities period.

• A. They must be definite and ascertainable within the perpetuities period
• B. They may be indefinite and unascertainable
• C. They must all be charities
• D. They must be settled as private corporations

Answer: (A)

The concept being tested is compliance with the Rule Against Perpetuities in New York. In a trust, the beneficiaries must be definite and ascertainable within the perpetuity period, which is measured by a life in being at the time the trust is created plus 21 years. This means you must be able to identify who will benefit within that window and know when they will take. If the class of beneficiaries is indefinite or cannot be determined within that period, the trust violates RAP and could be invalid. There is a notable exception: charitable trusts are not subject to RAP in the same way, so they can run for longer than the perpetuity period, but for non-charitable trusts, the beneficiaries must be definite and ascertainable within the permissible timeframe. Therefore, the best answer reflects the requirement that beneficiaries be definite and ascertainable within the perpetuities period.