Rule Against Perpetuities

Question 1

Rule Against Perpetuities (RAP)

Answer 1

No interest in property is valid unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.

Question 2

Exception to RAP

Answer 2

Charity to Charity transfer will not violate RAP

Question 3

RAP applies to what types of future interests?

Answer 3

Contingent Remainders, Executory Interests, Vested Remainders Subject to Open

Question 4

Brightline Rules for RAP

Answer 4

A gift to an open class that is conditioned on member surviving to an age beyond 21 = violation

Many shifting executory interests = violations
Executory Interest with NO LIMIT ON THE TIME WITHIN WHICH IT MUST VEST VIOLATES RAP

Question 5

But If Rule

Answer 5

If grantor sets up condition precedent with words BUT IF, and it violates RAP, the Entire condition precedent is stricken

Question 6

Reformation of RAP

Answer 6

Wait and See (Second Look Doctrine)

Uniform Statutory Rule Against Perpetuities (USRAP)

Question 7

Wait and See Doctrine (Second Look Doctrine)

Answer 7

Validity of any suspect future interest, is determined on the basis of the facts as they now exist, at the end of the measuring life

Question 8

USRAP

Answer 8

Codifies the common law RAP, and in addition provides for an alternative 90 year vesting period.

Question 9

Cy Pres

Answer 9

If given disposition violates the rule, a court may reform the language in a way that most closely matches grantor’s intent while still comply with RAP.

Automatic reduction of any offensive age contingency to 21 years.