Rule Against Perpetuities and Suspension Rule

Question 1

What is the NY Suspension Rule?

Answer 1

Any interest is void if it suspends the power of alienation (sale/transfer) for a period longer than a life in being plus 21 years

Question 2

What does the suspension rule mean?

Answer 2

When, 21 years after the death of a measuring life, there are no persons who could come together and join their pieces of the estate and sell it in fee simple, the interest is void.

Question 3

When do concerns of suspension of alienation arise?

Answer 3

1. When spendthrift income interests are in the trust (likely in NY); or
2. A life estate is created in an unborn person or in an open class that may possibly include unborn persons

Question 4

How does the suspension rule differ from the rule against perpetuities?

Answer 4

The RAP deals with vesting only. The suspension rule is concerned with alienability of an interest

Question 5

What will you see when the suspension rule is not violated?

Answer 5

Facts to make sure that there are persons identified and alive that could, together, convey a fee simple

Question 6

What is the NY RAP reform statute?

Answer 6

Reduces age contingencies to 21 so as not to violate the RAP

Question 7

Does the NY RAP reform statute apply to the suspension rule?

Answer 7

Yes