RAP Reform

Question 1

Cy Pres

Answer 1

Statutes authorizing courts to reform a disposition in a way that avoids any perpetuity violations while trying to effectuate the persons intent to closest form possible

Question 2

Wait & See

Answer 2

a. Wait and see if it will vest or fail within a statutory period directed
b. Two step analysis
1) See if there is a validating life
2) If not then wait and see under stipulated amount of time to see if it will or not vest

Question 3

Uniform Statutory Rule Against Perpetuities (USRAP)

Answer 3

a. Like wait and see but gives a 90 year rule
b. Doesn’t actually usually wait for 90 years it usually vests or fails before that
c. First apply the common law rule of RAP then if it fails this test wait and see if it will vest or not in 90 years

Question 4

Two generations approach

Answer 4

a. A trust or other donative disposition of property is subject to judicial modification to the extent that it does not terminate on or before the expiration of the perpetuity period
PP = expires at the death of the last living measuring life
ML = A group consisting of the transferor and the beneficiaries who are related and who are no more than two generations younger than the transferor and those unrelated must also be two generations behind transferor