Rule Against Perpetuities

Question 1

The Rule Against Perpetuities provides that certain kinds of future interests are void if there is any possibility that the interest…

Answer 1

might vest more than 21 years after a person alive at the time of the grant has died.

Question 2

RAP applies only to…

Answer 2

1. Contingent remainders;
2. Executory interests;
3. Vested remainders subject to open;
4. Options to purchase; and
5. Rights of first refusal.

Question 3

For interestes granted by will, RAP runs from the date of….

Answer 3

the testator’s death.

Question 4

For interests created by deed, RAP begins to run on the date of…

Answer 4

deed delivery.

Question 4

For interests in a revocable trust, RAP begins to run from the date…

Answer 4

the revocable trust becomes irrevocable.

Question 4

For interests in an irrevocable trusts, RAP begins to run from the date…

Answer 4

the irrevocable trust is created.

Question 5

RAP does not apply to…

Answer 5

vested remainders.

except when subject to open.

Question 6

A violation of RAP destroys…

Answer 6

only the offending interest.

Question 7

Why does “to A for so long as no liquor is consumed on the premises, then to B” violate RAP?

Answer 7

Because the executory interest follows a defeasible fee with no limit on the time within which it must vest.

Question 8

The Uniform Statuatory Rule Against Perpetuities codifies common law RAP and additionally provides for…

Answer 8

an alternative 90-year vesting period.