RAP

Question 1

What are the four interests affected by RAP?

Answer 1

Executory interests, contingent remainders, class gifts, options/transfers

Question 2

What is the main goal when applying the RAP?

Answer 2

Prove that a contingent interest is certain to vest or terminate no later than 21 years after the death of some person alive or in utero at the creation of the interest

Question 3

What are the steps for applying RAP?

Answer 3

STEP 1: Identify the lives in being who are causally connected to the grant
Ex. T -> Grandchildren; T, children, and current grandchildren are lives in being

STEP 2: Determine whether the interest will vest within the lifetime or no later than 21 years after the death of just one of the lives in being; this is the validating life
Ex. T -> Grandchildren
At T’s death, we know how many children T has

When all of children die, we know how many grandchildren there are

The last living child is the validating life

STEP 3: Strike the offending language from the grant

Question 4

What is the “all or nothing” rule?

Answer 4

Class gift is not vested in any member until interests of all members vested

Question 5

What is the class closing rule?

Answer 5

The possibility that more members may be added to a class at a remote point in the future creates a potential violation of the Rule Against Perpetuities

Question 6

What is the rule of convenience?

Answer 6

A class will close as soon as one member of the class is entitled to immediate possession or enjoyment (i.e., there is no preceding life estate)

Any births or adoption after the class closes prematurely may not share in the gift