Podcast
Questions and Answers
Which of the following future interests are subject to analysis under the Rule Against Perpetuities (RAP)?
Which of the following future interests are subject to analysis under the Rule Against Perpetuities (RAP)?
- Vested Remainder
- Contingent Remainder (correct)
- Reversion
- Fee Simple Absolute
When does the RAP period begin to run in the case of a grant made through a will?
When does the RAP period begin to run in the case of a grant made through a will?
- When the will is signed by the testator
- When the will is drafted
- When the will is probated
- Upon the death of the testator (correct)
In a grant "to A for life, then to B's children who reach the age of 30," which individual(s) can serve as a measuring life if B has no children at the time of the grant?
In a grant "to A for life, then to B's children who reach the age of 30," which individual(s) can serve as a measuring life if B has no children at the time of the grant?
- Only A
- Both A and B (correct)
- Only B
- B's future children
Why does the Rule Against Perpetuities exist?
Why does the Rule Against Perpetuities exist?
O conveys "to A for life, then to B if B graduates from law school." At the time of conveyance, B is 10 years old. Which statement accurately describes whether RAP is satisfied, assuming B does eventually graduate from law school?
O conveys "to A for life, then to B if B graduates from law school." At the time of conveyance, B is 10 years old. Which statement accurately describes whether RAP is satisfied, assuming B does eventually graduate from law school?
O conveys, "To A for life, then to A's children who survive A and reach the age of 30." At the time of this conveyance, A has a child, B, who is 5 years old. Does this conveyance violate RAP?
O conveys, "To A for life, then to A's children who survive A and reach the age of 30." At the time of this conveyance, A has a child, B, who is 5 years old. Does this conveyance violate RAP?
If a grant violates RAP, what action should be taken to reform the grant?
If a grant violates RAP, what action should be taken to reform the grant?
O conveys "to A for life, then to B's children." At the time of this conveyance, B is alive and has two children, C and D. Which of the following is TRUE?
O conveys "to A for life, then to B's children." At the time of this conveyance, B is alive and has two children, C and D. Which of the following is TRUE?
Which of the following examples illustrates a grant that violates the Rule Against Perpetuities?
Which of the following examples illustrates a grant that violates the Rule Against Perpetuities?
A trust is established in 2023. Which of the following provisions would most likely violate the Rule Against Perpetuities?
A trust is established in 2023. Which of the following provisions would most likely violate the Rule Against Perpetuities?
Which future interest is created by the following grant: "To A, but if A uses the land for anything other than farming, then to B"?
Which future interest is created by the following grant: "To A, but if A uses the land for anything other than farming, then to B"?
Which of the following scenarios would be most suitable for applying the 'wait-and-see' approach to the Rule Against Perpetuities?
Which of the following scenarios would be most suitable for applying the 'wait-and-see' approach to the Rule Against Perpetuities?
Which of the following best describes the 'life in being' for the purpose of the Rule Against Perpetuities?
Which of the following best describes the 'life in being' for the purpose of the Rule Against Perpetuities?
What is the consequence of violating the Rule Against Perpetuities?
What is the consequence of violating the Rule Against Perpetuities?
O conveys "to A for life, then to A's children who reach 30." A has one child, B, who is 2 years old at the time of the conveyance. If the jurisdiction adheres strictly to the Common Law Rule Against Perpetuities, which of the following represents the likely outcome?
O conveys "to A for life, then to A's children who reach 30." A has one child, B, who is 2 years old at the time of the conveyance. If the jurisdiction adheres strictly to the Common Law Rule Against Perpetuities, which of the following represents the likely outcome?
Flashcards
Rule Against Perpetuities (RAP)
Rule Against Perpetuities (RAP)
The rule that an interest in real estate must be certain to vest, if at all, no later than 21 years after a life or lives in being from the date the interest was created. It is a statute of limitations for contingent future interests.
Interests Subject to RAP
Interests Subject to RAP
Present estates are vested and not subject to RAP. Only contingent remainders and executory interests are subject to RAP.
When RAP Period Starts
When RAP Period Starts
For a deed, RAP starts when the deed is delivered. For a will, RAP starts when the testator dies.
Measuring Life
Measuring Life
A person alive when the interest is created, whose life can be used to determine if the interest will vest within the RAP period.
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RAP Vesting Requirement
RAP Vesting Requirement
The contingent interest must vest (or fail) within 21 years after the death of a measuring life. If it could take longer, RAP is violated.
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Consequence of RAP Violation
Consequence of RAP Violation
If a contingent future interest violates RAP, remove the offending interest and rewrite the grant to make sense without it.
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- The Rule Against Perpetuities (RAP) is a rule stipulating that an interest in real estate must vest within 21 years after a life in being from the interest's creation.
- RAP is like a statute of limitations for contingent future interests, such as contingent remainders and executory interests.
- The purpose of RAP is to promote commerce and prevent the obstruction of titles.
RAP Analysis Methodology
- Determine if a RAP analysis is needed
- Only contingent remainders and executory interests are subject to RAP.
- Present estates are vested; thus, they are not subject to RAP.
- Determine when the period starts to run
- For a deed, the statute of limitations begins when the deed is delivered.
- For a will, the statute of limitations begins when the testator dies.
- Ascertain the measuring life
- Freeze time at the start of the statute of limitations to identify a "life in being" to use as the measuring life.
- A class or group can be a measuring life only if the class is closed and every member is a life in being.
- Focus on the life most connected with satisfying the condition causing the RAP issue first.
- Determine the latest time the contingent interest will vest or fail
- If this exceeds 21 years after the death of any applicable measuring life, the grant violates RAP.
- Eliminate the offending contingent future interest
- Remove the part of the grant that is causing the RAP issues
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