RAP Analysis

Question 1

Basic Concept of RAP

Answer 1

“No interest [subject to RAP] is good… unless it must vest [or fail][in a closed class] no later than 21 years after some life in being at the creation of the interest

Question 2

When is it applicable?

Answer 2

Contingent remainders
Executory interests
Vested remainders in an open class

Question 3

Five Step Process

Answer 3

1. Classify the interests
2. Identify the condition precedent to the vesting of the suspect future interest
3. Identify the measuring life
4. Test if the future interest will vest of fail within 21 years of that measuring life
5. Reclassify the remaining valid interests

Question 4

When does a vested remainder subject to an open class vest for the RAP?

Answer 4

1. it closes bc either no new members can join or one member is entitled to possession, AND
2. all class members meet the condition

Question 5

How to identify the measuring life?

Answer 5

A potential life in being is
1. someone who was alive at the time the interest was created AND
2. that has a reasonable connection to the interest

Question 6

When does the perpetuities period begin?

Answer 6

At the creation of the interest (or if its a will at the testator’s death)

Question 7

Wait-And-See Approach

Answer 7

looks backward at the end of the perpetuities period and asks whether the interests in question have vested or failed in a closed class