Why do we have RAP?
The RAP prevents you from creating a scenario where a future interest may vest for a long time into the future. (So far into the future that we cannot anticipate what is going to happen NOW).
The goal of the RAP is to test for...
CERTAINTY!
If the interest was created inter vivos (during someone's lifetime) it was created at...
the TIME of the grant!
A validating life is a person who tells us whether the interest must vest or fail within the perpetuities period. True or False?
True!
Oliver conveys Blackacre "to Anna, but if the land is ever used as a buisness during Anna's lifetime, to Ben."
WHEN is INTEREST created: At Oliver's conveyance;
WHAT is the interest subject to RAP: Ben's Executory Interest;
WHO are the lives being at the creation of the interest: Oliver, Anna, and Ben!
WHO is the validating life? We will know 21 years after their lives whether the interest will vest or not? YES AT ANNA'S DEATH WE WILL KNOW WHETHER SHE USED THE LAND FOR BUISNESS PURPOSES SO ANNA IS THE VALIDATING LIFE. --> RAP IS NOT VIOLATED AND BENS EXECUTORY INTEREST IS VALID.
The RAP is not about WHETHER an interest vests or fails. It is about whether we will KNOW if it vests or fails. True or False?
TRUE!
*CANNOT HAVE UNCERTAINTY!
The RAP is like a statute of limitations for a contingent future interest!
If the interest was created via Devise (aka a Will), then the interest is created at the testator's...
DEATH!
*does not matter when the will was DRAFTED
When thinking about the WHO: Identify the relevant and, if applicable, validating lives. What is a relevant life?
A person who affects vesting! usually mentioned or implied by the grant (prior life tenant, the parent where a conveyance is made to a child).
Professor Kramer conveys "$1,000 to my Themis students who are admitted to the bar." When, What, and Who?
When: Interests created at Professor KRAMER'S conveyance;
WHAT: Interest subject to RAP are the STUDENTS (Springing interest);
WHO: Lives in being at the creation of the interest are Prof. Kramer and Students.
WHO is the validating life? We will know 21 years after the last student dies whether it VESTED or FAILED.
*RAP: You get one person who is alive now, PLUS 21 years - a second generation! After this, we HAVE to know, with certainty, whether...
The interest is going to VEST or FAIL.
Re. the RAP, the courts say you can tie up your wealth for (2) generations, but AFTER that, we are going to need...
Some kind of certainty!
*RAP: You get one person who is alive now, PLUS 21 years - a second generation! (After this, we HAVE to know, with certainty, whether the interest is going to VEST or FAIL.
2 When's to think about regarding WHEN an interest is created. What are they?
1.) Inter vivos (during someone's lifetime); or
2.) Devise (in someone's will)
What is a validating life?
A person who tells us whether or not the interest vests within the perpetuities period (lifetime + 21 years)
It is best when thinking about RAP to think about WHEN, WHAT and WHO. The RAP care about WHEN interests are...
CREATED!
*ALSO HAVE TO KNOW WHAT (i.e., contingent remainder, ex. interersts (spring/shift), and class gifts)
*ALSO HAVE TO KNOW WHO (the person who is going to tell us whether or not the interest vests w/in the perpetuities period)
Think about the RAP as wealthy families who want to keep property in their families, and really anxious courts that do not like uncertainty!
Think about the RAP as wealthy families who want to keep property in their families, and really anxious courts that do not like uncertainty!
Regarding the WHO: There are 2 lives we care about. Who are they?
1.) Relevant life: A person who affects VESTING (problem will usually mention them or imply them) --> the person who has the future interest or is gonna give birth to the future interest
2.) Validating life: the person who tells us whether or not the interest will vest within the perpetuites period!
What is a "validating life"?
*IF THERE IS A VALIDATING LIFE, THE INTEREST IS GOOD.
- Must have been ALIVE when the interests were created;
- Can validate their OWN interest;
*IF THERE IS NO VALIDATING LIFE, THE INTEREST IS NO GOOD AND IT MUST BE STRIKEN FROM THE GRANT!If there is NO VALIDATING LIFE, then the interest is...
NO GOOD!
*Must be stricken from the grant!
It is best when thinking about RAP to think about WHEN, WHAT and WHO. The RAP care about WHEN interests are...
created!
*you HAVE to be able to pin-point when it happened
The RAP applies to what kind of future interests?
1.) executory interests;
2.) contingent remainders;
3.) Vested remainders subject to open (class gifts)