Future Interests Cont d The Rule Against Perpetuities (RAP)

Similar documents
Defeasible Estates Continued Future Interests

How to Do a Perpetuities Problem

Comments on Perpetuities Problems at Supp O A and his heirs so long as the land is used for residential purposes.

subject to open future children of B will be excluded from the class

SAMPLE ANSWERS TO SHORT ANSWER QUESTIONS FROM SPRING 2005 AND SPRING 2006 EXAMS

Answers to Estates and Future Interests Problems in the Book and Some More Problems

Special Rules Governing Future Interests

VICTORIAN PERPETUITIES LAW IN A NUTSHELL 1

The Rule Against Perpetuities Applied to Trusts

O conveys land to A for life, remainder to B, C, and D. B, C, and D are A s heirs apparent at law.

Future Interests Continued

When Words Fail Me: Diagramming the Rule against Perpetuities

Agnew Law Office, P.C.

Part 1 ESTATES CLASSIFIED AS TO DURATION Section Estates classified Estates tail abolished; future estates limited thereon

A Modern Guide to the Modifications of the Rule Against Perpetuities in New York

W.16 - Perpetuities and accumulations

Property, Executory Interests- pp October 23, 2006 Crusto s Socratic Dialogue. 1. Please provide an Analytical Overview of the Topic.

PERPETUITY ACT. Published by Quickscribe Services Ltd.

PROPERTY 8, 9, & 12 January 1998

MAINE STATE LEGISLATURE

PROPERTY DESCRIPTION All that real property situated in the municipality of, in County, California legally described as:

REFORM OF THE RULE AGAINST PERPETUITIES IN WESTERN AUSTRALIA.

Chapter 3: Future Interests

A CLASS gift is a limitation of a property interest

Basic Will Drafting and DL Wills

Estate Planning Basics

Transfer on Death Deed INSTRUCTIONS

University of Michigan Law School Scholarship Repository. Faculty Scholarship

UNIFORM REAL PROPERTY TRANSFER ON DEATH ACT. Drafted by the NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS. and by it

PLEASE DO NOT REMOVE THIS QUESTION BOOKLET FROM THE EXAM ROOM. PROPERTY: SAMPLE OBJECTIVE QUESTIONS. Professor Donahue. Date. Time

Terms. A person given authority by a proper court to manage and distribute the estate of a deceased person when there is no will.

Senate Bill No. 88 Committee on Judiciary

How to Minimize the Need for Probate in Texas

Will and Powers of Attorney Instruction Sheet Simple Wills and Powers of Attorney No Estate Planning

SIMULATED MBE ANALYSIS: REAL PROPERTY PROFESSOR ROBERT PUSHAW PEPPERDINE UNIVERSITY SCHOOL OF LAW

Illinois v. The Rule against Perpetuities, 3 J. Marshall J. of Prac. & Proc. 386 (1970)

1a. Analyze the dollar amount of LT's and R's 1984

POPE " OF " ROME ON THE " TIBER.

CASES, MATERIALS, AND PROBLEMS RICHARD H. CHUSED

A Modern Guide to Perpetuities

Suspension of the Power of Alienation

Feudal and Common-Law Characteristics of Future Interests in Illinois

Your search of the Calm County land records revealed the following properly-executed documents, all of which were promptly recorded:

UNIT 5: JOHN MATHIS CONTRACTS

What Every Attorney Should Know about Washington Transfer on Death Deeds

KEIR EDUCATIONAL RESOURCES

7 A.2d 696 Page 1 63 R.I. 216, 7 A.2d 696 (Cite as: 63 R.I. 216, 7 A.2d 696)

Answer A to Question 5

OFFICE OF THE ASSESSOR COUNTY OF LOS ANGELES JEFFREY PRANG ASSESSOR

The Rule Against Perpetuities as It Relates to Powers of Appointment

Perpetuities: Reforming the Common-Law Rule How to Wait and See

VESTED AND CONTINGENT INTERESTS

Medical Assistance ESTATE RECOVERY PROGRAM

Title Resources Guaranty Company 8111 LBJ Freeway, Suite 1200, Dallas, TX

PROBATE & LACK OF PROBATE IN WA

Chapter 609. (Senate Bill 780) Real Property Affordable Housing Land Trusts

Early Bar Prep Session Two

Recent Legislation: The Rule against Perpetuities-- Statutory Reform [Ohio Rev. Code Ann (Page Supp. 1967)]

White Paper. Proposed Legislative Fix to Problems Associated with Missing Shareholders and Nonresponsive/Non-locatable Heirs.

NC General Statutes - Chapter 41 1

The California Rules against Restraints on Alienation, Suspension of the Absolute Power of Alienation, and Perpetuities

The Importance of TOD & JTWROS Designations Tuesday, 27 May :13. A convenient move that could ward off probate on your accounts

Uniform Law Commission develops transfer-on-death deeds By Susan N. Gary

VIRGINIA REAL PROPERTY DISTINCTIONS MICHAEL DORAN UNIVERSITY OF VIRGINIA SCHOOL OF LAW

HOUSE BILL 188. N1, N2 7lr1292 A BILL ENTITLED. Estates, Trusts, and Real Property Rule Against Perpetuities

Destruction of Contingent Interests by Termination of a Trust

Maine Revised Statutes. Title 33: PROPERTY

APPLYING THE RULE AGAINST PERPETUITIES TO REMAINDERS AND EXECUTORY INTERESTS ORTHODOX DOCTRINE AND MODERN CASES

VOLUME II/MA, MT 28-11/07 SECTION

Terminology Common to Estate and Business Succession Planning 1 Jeffrey E. Tranel, Jenny Beiermann, Norman Dalsted, and R.

The Early Vesting Rule in Wisconsin

CED Overview of the Law

APPLICATION FOR DISTRIBUTION OF GENERAL CAPITAL CREDITS RETIREMENT OF DECEASED MEMBER

Sales Associate Course

Perpetuities in Texas,

Feudal and Common-Law Characteristics of Future Interests in Illinois

Unit 2: Dealing with Interests in Land

Summit Place Financial Advisors

KEIR EDUCATIONAL RESOURCES

February 2009 Bar Examination

Department of Legislative Services

CHAPTER 1: THE CONCEPT OF PROPERTY RELATED TO WILLS, TRUSTS, AND ESTATE ADMINISTRATION

Real Property Transfers at Death in Montana: Probate and Non Probate Issues 1

I. Introduction. II. The Preferential Right to Purchase Drafting Exercise

The Effect of Violation of the Rule Against Perpetuities in Missouri

Estates Terminology. Course Objectives. Terminology People. Terminology People. Terminology People. Terminology People

Perpetuities Reform in North Carolina: The Uniform Statutory Rule against Perpetuities, Nondonative Transfers, and Honorary Trusts

To: New Jersey Law Revision Commission From: Staff Re: Uniform Real Property Transfer on Death Act Date: March 8, 2010 MEMORANDUM OVERVIEW OF URPTODA

TRANSFER OF PROPERTY ACT,1882

MacKenzie Realty Capital, Inc.

The Rule Against Perpetuities in Missouri,


Heir Property. Robert A. Tufts Ph.D, J.D. LLM (tax) Attorney and Associate Professor Emeritus Alabama Agricultural Extension Service

REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND. No September Term, 2010 ERIC ROLAND ARLIN MESSERSMITH, JR.

Things You May Have Missed

Wills--Future Interests--Vesting of Estates (In re Montgomery Estate, 258 App. Div. 64 (2d Dep't 1939))

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON JULY 22, 2009 Session. IRIS TERESA BOWLING CHAMBERS v. FAYE BOWLING DEVORE, ET AL.

HOPING TO AVOID PROBATE

EXECUTOR DUTIES IN NEW YORK

TEXAS HOMESTEAD AND PROBATE LAW

Transcription:

Future Interests Cont d The Rule Against Perpetuities The Rule Against Perpetuities You must prove that the contingent interest will necessarily vest or fail within 21 years after some life in being at the time of the creation of the contingent interest. 1

The Rule Against Perpetuities It is not necessary for it to vest, but it must not be able to vest too remotely, even if the chance of this happening is very unlikely and, in some cases, even considered to be medically impossible. The Rule Against Perpetuities Exemptions Future interests in transferors are exempted from the Rule. Also exempt are gifts that involve charities as holders of the all the present and future interests. See note 20, p. 305. 2

The Rule Against Perpetuities Life in Being If the contingent interest is created by will, then this person must be alive at testator s death. If the contingent interest is created by an irrevocable inter vivos transfer, this person must be alive at the time of the transfer. The Rule Against Perpetuities Validating or Measuring Life The person who allows you to prove that the contingent interest is certain to vest or fail no later than 21 years after the death of a life in being. These include preceding life tenants, takers of the contingent interest, anyone who can affect the identity of the takers (such as A in the case of a gift to A s children), and anyone who can affect a condition precedent. 3

Jee v. Audley, 1 Cox 324, 29 Eng. Rep. 1186 (1787), Casebook, p. 306. Edward s will bequeathed the interest on 1,000 to his wife for life, with the remainder unto my niece Mary Hall and the issue of her body..., and in default of such issue [when all her descendants depart from the earth]... to the daughters then living of.... John and Elizabeth Jee. p. 306 (emphasis added). Interests Created By The Will Edward s wife has a life estate. Mary has a fee simple, subject to a shifting executory interest if Mary dies without issue. The future (executory) interest lies in the daughters then living of John and Elizabeth Jee. Mary Hall Jee Daughters 4

Does the Contingent/Executory Interest Violate the Rule Against Perpetuities? Lives in being? At Edward s death Validating or measuring life? Indefinite Failure of Issue John and Elizabeth Jee might have children born ten years after the testator s death and then Mary Hall might die without issue 50 years afterwards, in which case it would evidently transgress the rules prescribed. p. 308 (emphasis added). 5

Indefinite Failure of Issue Cont d Mary is not the validating life. Mary Hall will die without issue when Mary is dead and there is no issue of Mary alive on the face of the earth, which could occur at her death, or hundreds of years after her death, or never! Remote Vesting Scenario After Edward s death, 1. Mary might give birth to a child, named Faith. 2. John and Elizabeth might have a fifth daughter named Hope (an after-born child). 3. All the relevant persons who were alive at Edward s death (Mary, John, Elizabeth, and the 4 daughters) might die in a catastrophe. 6

Remote Vesting Scenario Cont d 4. More than 21 years after the death of the relevant lives in being, Mary s daughter Faith dies childless, survived by Hope Jee. 5. At that point Mary would die without issue and the fund would vest in Hope, who was not a life in being (not alive at testator, Edward s death). Significance of Case Rigid Construction default of such issue general/indefinite failure of issue definite failure of issue then living 7

Significance of Case Cont d What-Might-Happen Approach Fertile Octogenarian Class Gifts 8