RAP, RAP Violations, RAP Special Cases Flashcards

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1
Q

What is the goal of RAP?

A

Testing for uncertainty + SOL for contingent future interests

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2
Q

Why is the RAP measurement a life plus 21 years?

A

Approximately two generations, beyond which we can’t say what will happen

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3
Q

When are RAP interests created?

A
  1. Inter vivos transfers: interest created at the time of the grant)
  2. Devise (will): interest created at testator’s death (not when the will is drafted
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4
Q

What interests are subject to RAP?

A

RAP applies to:

  1. Contingent remainders
  2. Executory interests (shifting + springing)
  3. Class gifts, subject to open if not closed by rule of convenience

DOES NOT APPLY TO VESTED REMAINDERS UNLESS SUBJECT TO OPEN

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5
Q

What is the difference between relevant and validating life for RAP purposes

A

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

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6
Q

What are the three requirements for a validating life?

A
  1. Must be alive when interest was created
  2. 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

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7
Q

True or false: RAP is about whether an interest vests or fails

A

FALSE. RAP cares about uncertainty, whether we know if the future interest vests or fails.

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8
Q

What is the special rule re: RAP and Class Gifts (subject to open)

A

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

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9
Q

When does a class gift subject to open close under the rule of convenience?

A

As soon as a member of the class is entitled to immediate possession.

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10
Q

What are the exceptions to the “all or nothing” class gift rule?

A
  1. Transfers of a specific dollar amount to each class member
  2. Transfer to a subclass that vests at a specific time
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11
Q

True or false: RAP does not apply to a gift from one charity to another

A

True – public policy, encourage giving

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12
Q

True or false: RAP does not apply to an option held by a current tenant to purchase a fee interest in the leashold property

A

True

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13
Q

What is the “wait and see” approach towards RAP?

A

Modern approach: Wait and see if an interest subject to RAP vests within the perpetuities period

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14
Q

Define cy pres

A

An equitable doctrine that allows a court to reform a transfer to avoid RAP

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