RAP, RAP Violations, RAP Special Cases

Question 1

What is the goal of RAP?

Answer 1

Testing for uncertainty + SOL for contingent future interests

Question 2

Why is the RAP measurement a life plus 21 years?

Answer 2

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

Question 3

When are RAP interests created?

Answer 3

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

Question 4

What interests are subject to RAP?

Answer 4

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

Question 5

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

Answer 5

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

Question 6

What are the three requirements for a validating life?

Answer 6

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

Question 7

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

Answer 7

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

Question 8

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

Answer 8

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

Question 9

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

Answer 9

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

Question 10

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

Answer 10

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

Question 11

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

Answer 11

True – public policy, encourage giving

Question 12

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

Answer 12

True

Question 13

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

Answer 13

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

Question 14

Define cy pres

Answer 14

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