RAP, RAP Violations, RAP Special Cases Flashcards
What is the goal of RAP?
Testing for uncertainty + SOL for contingent future interests
Why is the RAP measurement a life plus 21 years?
Approximately two generations, beyond which we can’t say what will happen
When are RAP interests created?
- Inter vivos transfers: interest created at the time of the grant)
- Devise (will): interest created at testator’s death (not when the will is drafted
What interests are subject to RAP?
RAP applies to:
- Contingent remainders
- Executory interests (shifting + springing)
- Class gifts, subject to open if not closed by rule of convenience
DOES NOT APPLY TO VESTED REMAINDERS UNLESS SUBJECT TO OPEN
What is the difference between relevant and validating life for RAP purposes
Relevant: Person who affects vesting, usually mentioned or implied by the grant
Validating life: person who tells us whether or not the interest vests within period (lifetime plus 21 years) – if you have this, there is no RAP violation
What are the three requirements for a validating life?
- Must be alive when interest was created
- Can validate own interest
3 (a). If no validating life, RAP violation: interest is no good and strike it from the grant
3(b). If there is a validating life, the interest is good
True or false: RAP is about whether an interest vests or fails
FALSE. RAP cares about uncertainty, whether we know if the future interest vests or fails.
What is the special rule re: RAP and Class Gifts (subject to open)
If the gift to any member of the class is void under RAP, then the gift is void to all members of the class = All or Nothing
When does a class gift subject to open close under the rule of convenience?
As soon as a member of the class is entitled to immediate possession.
What are the exceptions to the “all or nothing” class gift rule?
- Transfers of a specific dollar amount to each class member
- Transfer to a subclass that vests at a specific time
True or false: RAP does not apply to a gift from one charity to another
True – public policy, encourage giving
True or false: RAP does not apply to an option held by a current tenant to purchase a fee interest in the leashold property
True
What is the “wait and see” approach towards RAP?
Modern approach: Wait and see if an interest subject to RAP vests within the perpetuities period
Define cy pres
An equitable doctrine that allows a court to reform a transfer to avoid RAP