Rule Against Perpetuities

Question 1

What is RAP?

Answer 1

Certain future interests are void if there’s a possibility they’ll vest more than 21 years after a person alive at the time of the grant has died

Question 2

4-step technique for RAP problems

Answer 2

1) determine future interest
2) what has to happen for future interest holder to take?
3) find measuring life
4) when will we know if future interest holder can take?

Question 3

Reform efforts of RAP? (3)

Answer 3

Wait and see (make a determination on the basis of the facts as they exist when the measuring life ends)

Uniform Statutory RAP (codifies RAP and adds an alternative 90-year vesting period)

Cy Pres Doctrine (court can reform in a way that closely matches grantor’s intent)