Rule Against Perpetuities (RAP)

Question 1

The Rule

Answer 1

certain kinds of future interests are void if there is any possibility, however remote, that the given interest may vest more than 21 years after the death of a measuring life

Question 2

4 Step Technique for Assessing Potential RAP Problems

Step 1

Answer 2

1. determine what future interests have been created by the conveyance. the RAP potentially applies only to contingent remainders, executory interests, and certain vested remainders subject to open. the RAP does not apply to any future interest in O, the grantor–or to indefeasibly vested remainders–or to vested remainders subject to complete defeasance

Question 3

4 Step RAP Problem Technique

Step 2

Answer 3

Identify the conditions precedent to the vesting of the suspect future interest

Question 4

4 Step RAP Problem Technique

Step 3

Answer 4

Find a measuring life–look for a person alive at the date of the conveyance and ask whether that person’s life or death is relevant to the condition’s occurrence

Question 5

4 Step RAP Problem Technique

Step 4

Answer 5

Ask: will we know, with certainty, within 21 years of the death of our measuring life, if our future interest holder(s) can or cannot take? If so, the conveyance is good. If not (if there is any possibility, however remote, that the condition precedent could or could not occur more than 21 years after the death of a measuring life), the future interest is void

Question 6

RAP Problem Example

Answer 6

“To A for life, then to the first of her children to reach the age of 30.” A is 70. Her only child, B, is 29 years old.
1-classify future interest: contingent remainder
2-what are the conditions precedent to the vesting of the future interest?
A must die and have child reach 30
3-find a measuring life: life & death relevant to the occurrence:
A–not B because the grant is not B specific
4-will we know w/ certainty, within 21 years of the death of our measuring life, if a future interest holder can take? in other words, is there any possibility, however remote, that A would not have a child to reach 30 until more than 21 years after A’s death? YES

Question 7

2 Bright Line Rules of Common Law RAP–Rule 1

Answer 7

A gift to an open class that is conditioned on the members surviving to an age beyond 21 violates the common law RAP
     "bad as to one, bad as to all"--must be shown that that the condition precedent to every class member's taking will occur within the perpetuities period

Question 8

2 Bright Line Rules of Common Law RAP–Rule 2

Answer 8

Many shifting executory interests violate the RAP–an executory interest with no limit on the time within which it must vest violates RAP

Question 9

Charity-to-Charity Exception

Answer 9

a gift from one charity to another doesn’t violate RAP