Rule Against Perpetuities Flashcards
What is the general rule for RAP?
No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.
What are the 4 steps to solving a RAP problem?
- Does RAP apply?
- Underline the contingent interest.
- Find the measuring life.
- Will we know for sure within 21 years after the measuring life dies, if the condition occurs?
Yes, valid.
No, void.
RAP applies to what interests?
Contingent remainder, vested remainder subject to open, executory interest
How do we find the measuring life?
Turn the contingent interest into a question. Who is in the best position to tell us who ________________ is?
When does creation of the interest by deed occur?
If the contingent interest is created by an irrevocable intervivos transfer, the creation occurs at the tiem of the transder, and the measuring life in being must be a person alive at the time of transfer.
What is the gestation rule?
A child conceived but not yet born will qualify as a life in being at the creation of the interest if later born alive.
When does creation of the interedst by will occur?
If the contingent interest is created by will, the creation occurs at the testator’s death, and measuring life in being must be a person alive at the testator’s death.
If a condition says, “then living,” what does that mean?
Means the person must be living when everyone else in front of them is dead.
What is a life in being?
Those people alive at the time of the conveyance that are somehow connected to it.
What is a measuring life?
A person who can prove that a contingent interest is certain to vest or fail within the permitted time period.
How many measuring lives can there be?
There can be more than one measuring life if there is more than one conveyance
Who can be a measuring life?
A measuring life may be someone not included in the problem.
How does a contingent remainder vest?
Contingent remaindes vest when the persons to take are born and ascertained and when there is no condition precedent.
How do executory interests vest?
Executory interests vest by becoming a vested remainder or by taking possession.
When do vested reaminders subject to open vest?
Vested remainders subject to open are fully vested when they are no longer subject to open (when the class is closed)
What interests does RAP not apply to?
Fully vested interests; future interests retained by the transferor; charitable organizations, if both the possessory estate and contingent interest are charitable
How do class gifts operate?
Class gifts stand or fall as a unit and is not vested in any member of the class until the interests of all the members are vested.
When does class gift vest under RAP?
For a class gift to be vested under RAP, the class must be closed (every member must be identified) and all conditions precedent for each and every member of the class must be satisfied within the perpetuities period.
What is a quick way to tell a class gift is void under RAP?
If it is a class gift and the age is over 21
What is the doctrine of cy pres?
Doctrine that involves reformation of invalid interests so as to carry out the transferor’s intent within the perpetuities period.
What if a conveyance says “if the land is ever”?
This indicates perpetuity and is void
What if the executory interest of a fee simple subject to condition subsequent violates RAP?
The condition is stricken and becomes a fee simple absolute.
What is the executory interest in a fee simple determinable violates RAP?
The condition is stricken and left with a fee simple determinable and a possibility of reverter.
