The Rule Against Perpetuities Flashcards
Rule Against Perpetuities Language
No interest in land is valid unless it vests, if at all, no later than 21 years after some life in being at the creation of the interest
When does the Rule against Perpetuities apply
It applies only to
1) contingent remainders
2) executory interests
3) vested remainders subject to open
4) options to purchase
5) rights of first refusal
It does not apply to any of the grantor’s interests (possibility of reverter, right of re-entry, or reversion)
When does an interest vest
An interest vests when it becomes
1) possessory; or
2) an indefeasibly vested remainder or a vested remainder subject to total divestment
Life In Being
Unless other measuring lines are specified, the one connected with the vesting of the interest is used. Look for a person alive at the date of conveyance whose life or death is relevant to the condition’s occurrence.
Steps for Determining Rule Against Perpetuities Problems
1) determine which future interests have been created and whether the rule applies \
2) determine what has to happen for the future interest holder to take
3) look for the measuring life - people alive on the date of conveyance whose life of death is relevant to what has to happen to vest
4) determine whether it will vest for sure within 21 years of the death of a measuring life
Executory Interests with no Time Limit
An executory interest that follows a defeasible fee with no time limit within which it must vest violates RAP, and the executory interest is stricken
An executory interest following a defeasible fee is valid only if the condition is specific to the fee holder or expressly limited to the perpetuities period
Age Contingencies beyond Age of 21 in Open Class
A gift to an open class conditioned upon members surviving beyond age of 21 violates RAP
Vested Subject to Open fails
If the interest of any class member may vest too remotely, the whole class gift fails
For the class to vest, the class must be closed and all conditions precedent satisfied for every member
Fertile Octogenarian
A woman is conclusively presumed to be capable of bearing children, regardless of her age or medical condition
Reform of RAP
Wait and See Doctrine - The majority have reformed RAP so that the validity of any suspect future interest is determined on the basis of the facts as they exist at the conclusion of the measuring life
Uniform Statutory RAP - this codifies the common law RAP and provides for an alternative 90 year vesting period
Cy Pres Doctrine - Some reform measures allow a court to reform invalid interests. If a given disposition violates RAP, a court may reform it in a way that most clearly matches the grantor’s intent, while still complying with RAP.
