The Rule Against Perpetuities

Question 1

The Rule Against Perpetuities

Answer 1

Certain kinds of future interests are void if there is any possibility, however remote, that the interest might vest more than 21 years after a person alive at the time of the grant has died.

Question 2

RAP purpose

Answer 2

To balance allowing owners to exert control and uncertainty about future ownership

Question 3

RAP application

Answer 3

Only applies to:
-Contingent remainders
-Executory interests
-Vested remainders subject to open

Question 4

Four step RAP technique for exam

Answer 4

1. Determine the future interest
   -RAP Does not apply unless the interest is a contingent remainder, executory interest, or vested remainder subject to open
2. Ask: what has to happen for the interest holder to take?
   -Does the holder of a previous estate need to die?
   -Does a previous holder need to have had children?
   -Does a certain condition need to be met?
3. Find the measuring life
   -The life relevant to what has to happen for the future interest holder to take
4. Ask: when will we know for sure if the future interest holder can take?
   -If the future interest holder can take within 21 years of the death of the measuring life, the conveyance is good
   -If not, the future interest is invalidated by RAP and the void language is stricken, reclassifying the interests as if the void language never existed

Question 5

Common pitfall to bright line rule

Answer 5

An executory interest without a time limit per se violates RAP

Example:
-To A for so long as no liquor is consumed on the premises, then to B

Question 6

Rap Reform

Answer 6

1. “Wait and see” doctrine
   -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
2. Uniform Statutory Rule Against Perpetuities (USRAP)
   -Codifies CL RAP and provides an alternative 90-year vesting period
3. Cy Pres doctrine (“as near as possible”)
   -A court can redraft a grant in a way that most closely matches the grantor’s intent without violating RAP