After Midterm: Rules Against Perpetuities Flashcards
What is the Rules Against Perpetuities?
No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.
Rules Against Perpetuities
“No _________ is good unless it must _____, if at all, not later than _____ ________ after some ______ ____ ________ at the creation of the interest.”
Interest
Vest
21 years
Life in being
RAP applies to:
Contingent Remainders
Vested Remainder Subject to Open
Executory Interests
Historical Rationale: As described in the book, one historical rationale for the rule was that fathers wanted to secure their land for their families and protect the family from incompetent sons. In other words, the father could assess the capabilities of his children and make provisions for them during their lifetimes (lives in being), and his grandchildren (after the death of his children and for 21 years thereafter. The age of majority). True of False
True
What is the purpose of the Rule Against Perpetuities?
To promote a limited amount of time within which a contingency will encounter the free marketability of the property.
To promote a limited amount of time within which a contingency will encounter the free marketability of the property. What is this?
The purpose of the rule against perpetuities
If a conveyance says, “T devises,” then T is dead. True of False?
True.
“T devises” means that T is dead. When you are reading a conveyance that is a rule against perpetuity conveyance. The people are going to read your will out loud when you are dead. Assume T is dead, and we know who all of T’s kids are because he is not having anymore kids after he is dead. True of False?
True
When does the creation of the interest occur?
1.
2.
- Creation by Deed
- Creation by Will
If the contingent interest is created by an irrevocable Inter vivos transfer, the creation occurs at the time of the transfer, and the measuring life in being must be a person alive at the time of transfer.
Creation by Deed
Creation by Deed
If the contingent interest is created by an irrevocable Inter vivos transfer, the creation occurs at the time of the transfer, and the measuring life in being must be a person alive at the time of transfer.
Creation by Deed:
If the _____________ interest is created by an irrevocable Inter vivos transfer, the creation occurs at the time of ______ _______________, and the measuring life in being must be a person ________ at the time of transfer.
Contingent
The transfer
alive
If the contingent interest is created by will, the creation occurs at the testator’s death, and measuring life in being must be a person alive at the testator’s death.
Creation by Will
Creation by Will.
If the contingent interest is created by will, the creation occurs at the testator’s death, and measuring life in being must be a person alive at the testator’s death.
If the contingent interest is created by ________, the creation occurs at the __________ _________, and measuring life in being must be a person ________ at the testator’s death.
Will
Testator’s death
Alive
What we are worried about with the RAP is whether or not someone is tying up land for too long. The idea is that there is a certain amount of time to tie up the land, but after that amount of time it violates the RAP. The appropriate amount of time that you can tie up the land would be the entire lifetime of a life in being at the ______ of the _______ (their whole life then they die) plus ____ ___________.
Creation of the Interest
21 years
When talking about a life in being at the creation of the interest we have to specify what creation is - Creation is by _____ or by _____. Creation by _____ will say someone devises. The rest of the time assume it is a Creation by ________.
Deed or by will
Will
Deed
If it is a deed the people that you can use as a life in being is:
Everybody that is alive at the time of the transfer of the deed.
If it is a will the people that you can use as a life in being is:
Whoever is alive at the testator’s death. Whoever survives them.
Rule - you can have a baby no matter how old you are. Legal mechanism allows us to become parents - adoption. You may not choose to reproduce at 57 but you can adopt someone at that time. Fertile Lectin Jennerian: Proposition that you can always have babies, if you are not dead you can have babies. True of False?
True
The _____________ rule says that a child conceived but not yet born at the time of the conveyance will qualify as a life in being at the creation of the interest if later born alive.
Gestation
If someone is actually pregnant and that child is later born alive it will qualify as a life in being at the creation of the interest. True or False?
True
Watch out for ______ _________. You have to live longer than everyone else in the conveyance.
Then living
Watch out for then living: you have to:
Live longer than everyone else in the conveyance.
We must, therefore, apply the test at the time the interest is created (at the time of conveyance); and must prove that a contingent interest is certain to ____ or terminate no later than ______ ________ after the death of some person alive at the creation of the interest.
Vest
21 years
________ ______ _________ at creation of the interest are all of those people alive at the time of the conveyance that are somehow connected to it.
Lives in being
___________ __________: a person who can prove that a contingent interest is certain to vest or fail within the permitted time period.
Measuring Life
Example: O —> A for life, then to A’s first child to reach 21.
A is the ___________ (validating) __________. You can prove that any child of A who reaches 21 will do so within 21 years of A’s death. The remainder must vest of rail within this period.
Measuring life
The __________ ____________ do not have to be specifically listed in the problem. For example, T devises property to “my grandchildren who reach 21,” T leaves 2 children and 3 grandchildren under 21. The measuring lives are?
T’s 2 children
O —-> A for life, then to A’s children. Best position to tell who A’s children are is
A so A is our measuring life.
A problem could have more than 1 measuring life because it has more than one conveyance. Also, the measuring life might not be a person specifically listed in the problem. True or False.
True
Example: T devises (dead) property to my grandchildren who reach 21. T leaves 2 children and 3 grandchildren under 21. The measuring life’s are T’s kids because T’s kids are in the best position to tell us if T is going to have any grandkids. We know who all of T’s kids are because he is dead. True or False.
True
In order to test a particular contingent interest to determine if it meets the RAP, it is necessary to first assume that the lives in being at the creation have died, and then go out another ________ _______.
21 years
What does RAP apply to?
Contingent Remainders
Executory Interests
Vested Remainders Subject to Open
What does the RAP apply to?
Contingent Remainders
Executory Interests
Vested Remainders Subject to Open
Keep in mind that the RAP does not invalidate every contingent insterest, only the ones that
Might vest too far out
If the conveyance is valid, it
Does not violate the RAP
If the conveyance is void,
It does violate the RAP.
_______ ________ ________ are not subject to RAP, which means they do not violate RAP and RAP does not even apply.
Fully vested remainders
_________ ______________ vest: when the persons to take (the property) are born and ascertained, and when there is no condition precedent.
Contingente reminders
O —> A for life, then to B if B turns 21. If B turns 21 his interest is now ________, and he is not subject to RAP anymore.
Vested
Contingent remainders follow _______ ___________ or other __________ ____________.
Life estates or other contingent remainders
___________ ___________ vest: by becoming a vested remainder or by taking possession. (For example, in the conveyance O —> A for life, then to b, but if B fails to turn 21 then to C. Where B dies before A and before turning 21, C’s executory interest becomes a vested remainder.
Executory interests
_________ _________ follow vested remainders, or they follow fee simple determinable, or they follow fee simple subject to conditions subsequent. That is all the places we would see one.
Executory interests
An ___________ ____________ vests, by either becoming a vested remainder or by taking possession.
Executory interest
O —> A for life, then to B, but if B fails to turn 21, then to C. If we are told that B before A and then before turning 21, C’s executory interest now becomes a ________ __________such that B is out of the picture and when A dies it goes straight to C.
Vested remainder
_________ ___________ ______________ _____ ____________: are fully vested when they are no longer subject to open (when the class is closed).
Vested Remainders Subject to Open
O —> A for life, then to A’s children. B is A’s child.
B has a __________ __________ __________ ____ __________ (because B is taken through a class gift meaning that he might not be the only one of A’s children. If A has more kids B is going to have to share.
Vested remainder subject to open
___________ ____________ __________ _____ ___________ are subject to RAP but when they become fully vested, they are not. They can become fully vested when the class is closed. If my class is A’s children, how do I close the class?
Vested Remainder Subject to Open
When A dies, because once A is dead, he doesn’t have any more kids.
Does RAP apply to fully vested interests?
Example: O —> A for life, then to B
RAP does NOT apply because B is fully vested.
Does RAP apply to future interests retained by the transferor (examples: reversions, possibilities of reverter, and rights of entry)?
No RAP does NOT apply. RAP does not apply so it doesn’t violate.
Does RAP apply to charitable organizations, if both the possessory estate and the contingent future interest are charitable?
No RAP does not apply. Charity to Charity exception: If both defensible fee and the executory interest are charities it doesn’t violate RAP.
Does RAP apply to the following conveyance: “O conveys Black acre to Charity One so long as they do charitable things, then to Charity Two”?
No. RAP does not apply and the reason is the Charity-to-Charity exception.
To apply this rule, we are testing the conveyance to see whether each interest will be certain to ____ or not to _____ within the time limit established by the rule.
We only care if an interest will vest too far out in time, tying up the title while we wait to find out if it vests. If an interest will either vest or fail to vest within our timeframe it is ok and does not violate the _____ _______ _________.
When an interest violates the RAP, it is struck out and the remaining valid interests stand.
Vest
Vest
RAP
When an interest violates the RAP, it is _________ __________ and the remaining valid interests stand.
Struck out
O —> A for life, then to B if B attains the age of 30. B is now 2 years old. Is the conveyance good?
RAP applies to that kind of conveyance because it is a contingent remainder. B is in the best position to tell us if he is going to turn 30.
Because B is a life in being at the creation of the interest because he is now a 2 year old this is valid because you will know for sure by the time B dies how old he was. You do not need the extra 21 years. It DOES NOT violate RAP.
Class Gifts
1.
2.
3.
- Must stand or fall as a unit
- Under the RAP, a class gift is not vested in any member of the class until the interests of all the members are vested.
- A gift that is vested subject to open is not vested under the RAP
Class Gifts
1. ?
2.
3.
- Must stand or fall as a unit
Class Gifts
1.
2. ?
3.
- Under the RAP, a class gift is not vested in any member of the class until the interests of all the members are vested.
Class Gifts
1.
2.
3. ?
- A gift that is vested subject to open is not vested under the RAP.
For a gift to be _______ under the RAP, the class must be _________. (Every member must be identified) and all conditions precedent for each and every member of the class must be satisfied within the perpetuities period.
Vested
Closed
If the class gift is A’s children, then A has to be _______.
Dead
O —> A for life, then to A’s children. A has one living child B. B’s remainder is ______ _______ ______ ________ because A is capable of having more children until A’s death. This means that B’s remainder is not vested under the RAP because the interests of other members of the class are not vested (they are not yet identified). Just because B’s interest is subject to the RAP does not make it invalid, it simply means that we have to test it. Because all of the members of the class will be ascertained at A’s death, the remainder is valid.
Vested subject to open
Anytime you have a class gift and the number is over 21, it is going to _______ RAP.
Violate
