Ch 7: RAP Special Cases

Question 1

RAP and Class Gifts Special Rule

Answer 1

If the gift of any member of the class is void under RAP, then the gift is void as to ALL members of the class (“all or nothing rule”)

Question 2

Oliver conveys “to Anna for life, then to her children who reach 25.” Anna’s son is 26 and her daughter is 18. Have any class members vested? Is the class closed? Does the gift survive RAP? What happens to bens interest if not?

Answer 2

1. Yes, bens remainder has vested b/c he is above 25.
2. No, Anna is still alive and could have more children.
3. The gift doesn’t survive RAP b/c Anna could have another kid and that kid could vest more than 21 years after everyone dies
4. Bens interest is then void under RAP (b/c all or nothing!) & we strike the offending interest: “then to her children who reach 25”

Question 3

Rule of convenience is an interpretative rule meaning?

Answer 3

We can decide if we are going to apply it or not

Question 4

Rule of convenience can save a class gift from?

Answer 4

being invalidated under RAP

Question 5

Rule of convenience

Answer 5

Says that the class closes as soon as a member of the class is entitled to immediate possession

Question 6

Oliver conveys “to Anna for life, then to anna’s grandchildren.” Anna has one grandchild, ben. W/o the rule of convince, the gift to Ben is ? With the rule of convenience, ben will take at?

Answer 6

1. void under RAP b/c it is possible that other grandchildren will be born more than 21 years after Anna or bens death
2. Ben will take at Anna’s death (&the class will close)

Question 7

Two exceptions to the class gift rule (where “all or nothing” does not apply)

Answer 7

• Transfers of a specific dollar amount to each class member
• Transfers to a subclass that vests at a specific time

Question 8

Exceptions to RAP

Answer 8

• Charities
• Options

Question 9

RAP does not apply to a gift from one ____ to another _____

Answer 9

from one charity to another charity

Question 10

RAP does not apply to an _____ held by a current tenant to purchase a fee interest in the leasehold property

Answer 10

option

Question 11

RAP does not apply to an option in a __________ transaction

Answer 11

commercial transaction

Question 12

“Wait and see” approach

Answer 12

to “wait and see” if an interest subject to RAP vests within the perpetuities period (some states have said 90 yrs for vesting period)

Question 13

Cy Pres

Answer 13

An equitable doctrine that allows a court to reform a transfer to avoid RAP