The Rule against Perpetuities Flashcards
What is the rule against perpetuities?
An interest is void if there is any possibility, however remote, that the given interest may vest more than 21 years after life in being at creation of interest
What interests does the Rule against perpetuities apply to?
- Contingent remainders
- Executory interests
- Certain vested remainders subject to open
What doesn’t the RAP apply to?
- Any future interest in grantor
- Indefeasibly vested remainders
- Vested remainders subject to complete defeasance
What are the bright line rules of common law RAP?
- Gift to open class conditioned on members surviving to age beyond 21 violates CL RAP
- Executory interest with no time limit within which it must vest violates RAP
What if interest is invalid under RAP?
Strike offensive future interest:
- If makes sense after stricken, done
- If nonsensical, strike entire conditional clause
What is the charity to charity RAP exception?
Gift from one charity to another does not violate RAP
Eg, “to Red Cross so long as X, and if not X, to YMCA”
“Wait and see” or “second look” doctrine?
- Majority reform effort
- Validity of any suspect future interest determined at end of measuring life
- NOT NY
What is the Uniform Statutory Rule Against Perpetuities
- Codifies CL RAP
- Allows for alternative 90-year vesting period
- NOT NY
What is the cy press doctrine?
- If given disposition violates RAP, court may reform it in way that most closely matches grantor’s intent while still complying with RAP
- Part of USRAP and “wait and see” doctrine
- NOT NY
What is the NY perpetuities reform statute?
- Rejected “wait and see”
- Rejected “cy pres”
- Reduces age contingencies to 21
- Assumes women over 55 cannot have children
What is the NY suspension rule?
Interest is void if suspends power to sell or transfer for longer than lives in being plus 21 years
Ie, for conveyance to be valid, must be persons in being who could join together in conveyance of fee simple title within lives in being plus 21 years
