Ch 5: RAP (The Rule Against Perpetuities)

Question 1

Why is RAP a rule?

Answer 1

• It prevents remote vesting (ex. people trying to protect their wealth but the courts are trying to prevent uncertainty)

Question 2

What is the goal of RAP?

Answer 2

Testing for certainty (operates like a statute of limitations for contingent future interests)

Question 3

Why does RAP look at a life + 21 years?

Answer 3

B/c it is approx. 2 generations (so the court says beyond that, we cant say what will happen- and therefore RAP applies)

Question 4

3 things to ask with RAP

Answer 4

1. When (identify when the interests are created)
2. What (determine if interests created are subject to RAP)
3. Who (identify the relevant and, if applicable, validating lives)

Question 5

Inter vivos transfers

Answer 5

Interests created at the time of the grant

Question 6

Devise (will)

Answer 6

Interests created at the testator’s death, not when the will is drafted

Question 7

RAP applies to what interests?

Answer 7

• Contingent remainders
• Executory interests (both shifting and springing)
• Class gifts subject to open (if not closed by the rule of convenience)

Question 8

RAP does NOT apply to?

Answer 8

vested remainders (unless it is subject to open)

Question 9

Relevant life

Answer 9

person who affects vesting, usually mentioned or implied by the grant

Question 10

Validating life

Answer 10

person who tells us whether or not the interest vests within the perpetuities period (lifetime + 21 years)

Question 11

A validating life must have been ______ when the interests were created

Answer 11

alive

Question 12

A validating life can ______ their own interest

Answer 12

Validate

Question 13

If there is no validating life, then the interest is __________

Answer 13

the interest is no good and we strike it from the grant (vice versa- if there is a validating life, the interest is good)

Question 14

Oliver conveys Blackacre “to Anna, but if the land is ever used as a business during Anna’s lifetime, to Ben.” When was the interest created? Is there an interest subject to RAP? Is there a validating life? Is RAP violated?

Answer 14

1. Created at Oliver’s conveyance (inter vivos)
2. Interest subject to RAP is Ben’s future interest (executory interest)
3. Anna (b/c at Anna’s death, we will know whether she used the land for business purposes)

Therefore, RAP is not violated & Ben’s executory interest is valid.

Question 15

Professor Kramer conveys $1000 to my Themis students who are admitted to the bar. When was interest created? Is there an interest subject to RAP? Is there a validating life? Is RAP violated?

Answer 15

1. Interest is created at the time of conveyance (inter vivos)
2. Interest subject to RAP is student’s springing executory interest
3. At the death of the last surviving student (b/c thats when we will know if it is vested or failed)

No violation of RAP. Student’s executory interests are valid.

Question 16

RAP is not about whether an interest vest or fails - it is about ?

Answer 16

whether we will know if it vests or fails (we cannot have uncertainty!)