Estates - Rules Against Perpetuities Flashcards
What is the purpose of RAP?
Get rid of contingent remainders to:
- help marketability
- prevent people from extending their wishes too far into future
For RAP, how far into the future can you control?
The next generation (the one you know) PLUS 21 years
RAP Rule
No interest is good unless it must vest, if at all, no later than 21 years after the death of some life in being at the creation of the interest
*RAP tells us that certain kinds of FI are void if they vest too far into future
Measuring/validating life?
Anyone who was alive at the time O gave the land
RAP applies to? - interests subject to attack
1) Vested remainder’s subject to open
2) Contingent remainders
3) Executory interests
What are two ways to save grants from RAP?
1) Interpretive tricks - judges can interpret in ways to save against RAP attack
2) Savings clause - makes it not subject to RAP
5 RAP statutory reform efforts
1) Cy Pres
2) Tinkering statutes
3) Wait and see
4) USRAP
5) Abolition
RAP reform - Cy Pres
(MO, OK, TX)
If grant violates RAP, judge can step in to change grant so that it’s ok against RAP
RAP reform - Tinkering statutes
(IL, NY)
Use common law RAP, but RAP doesn’t apply to:
- certain trustee duties and powers
- certain lease obligations
- options in gross or preemptive rights
- qualified perpetual tests
RAP reform - Wait & See
(PA, OH, VT)
Don’t guess what might happen. Just wait and see, it might vest in time.
RAP reform - USRAP
(28 states, DC and USVI)
- common law rule: interest is good, if good under common law rule
- 90 year wait and see: if bad under common law, wait and see if it vests
- reform at last resort: if it still hasn’t vested after 90 years, use Cy Pres - try to fix it!
RAP reform - Abolition
(3 states)
- RAP abolished
- In effect (wait & see for 200+ years)
