When Elon Musk moved to Texas, he brought more than just Tesla and Twitter/X — he helped spark a legal change that could reshape how Texans build generational wealth.
In 2020, Elon Musk made headlines when he announced he was moving from California to Texas, citing overregulation and a more business-friendly climate. But Musk’s relocation didn’t just influence real estate prices and tech migration — it also helped shine a light on a little-known legal restriction in Texas estate law: the Rule Against Perpetuities (RAP).
Shortly after his move, Texas legislators began pushing for a change in trust law that would give wealthy individuals — like Musk and countless others — more freedom to pass down wealth for generations.
What Is the Rule Against Perpetuities?
The Rule Against Perpetuities is a centuries-old legal doctrine that prevents someone from tying up assets in a trust forever. Under the traditional rule, a trust in Texas couldn’t last longer than 21 years after the death of a living person mentioned in the trust — typically capping a trust’s life at around 90–120 years.
This rule was meant to prevent long-dead individuals from controlling property indefinitely. But in modern estate planning, the RAP became a barrier to multi-generational wealth transfer, tax planning, and asset protection.
Enter Elon Musk — and Texas’s Legal Shift
Musk’s high-profile move to Texas in 2020 added momentum to a growing national trend: wealthy individuals and families were seeking out jurisdictions with more favorable trust laws — including the ability to create “dynasty trusts” that could last for centuries or even perpetually.
Other states like South Dakota, Nevada, and Delaware had already repealed or modified their RAP laws, giving them a competitive edge in attracting high-net-worth estate planning. Texas was falling behind.
In response, the Texas Legislature passed House Bill 654 in 2021, dramatically extending the permissible duration of trusts from 21 years past lives in being to up to 300 years — effectively modernizing the law and allowing families to build legacy trusts that span multiple generations.
This move was widely seen as a direct attempt to keep Texas competitive with other “trust-friendly” states and appeal to ultra-wealthy transplants like Musk, who are looking not just for lower taxes, but also for sophisticated tools to manage and protect their wealth long-term.
What This Means for Texans
Thanks to this legal change:
- Texans can now create long-term dynasty trusts that last up to 300 years.
- These trusts can protect assets from creditors, minimize estate taxes, and provide for descendants far into the future.
- Texas is now firmly on the map as a premier destination for generational wealth planning, especially for entrepreneurs, family offices, and high-net-worth individuals.
Elon Musk may not have lobbied for the law change directly, but his move to Texas certainly helped spotlight the need for a more modern trust framework. By extending the lifespan of trusts, Texas joined a new era of estate planning — one where families can think not just in decades, but in centuries.
If you’re planning to leave a legacy that lasts, Texas law now gives you the tools — and our firm can help you use them wisely.
