2.  An interest is not good* unless it must vest**, if at all, not later than 21 years after some life in being*** at the time of the creation of the interest, plus a period of gestation.  * good = valid  ** vest = “touch” the owner: ▪ Born, ▪ Ascertained, and ▪ No conditions precedent  *** life in being = alive; born but not yet dead

3. All of the following must be true for RAP to apply:  Future interest (not present interest),  Partially or totally contingent (not totally vested), and  Held by a non-charitable transferee (not an interest the grantor retained).

4. Thus, if you classify an interest as one of the following, you must check for a RAP violation:  Contingent remainder,  Vested remainder subject to open, and  Executory interest (including a trust). No other interests require a RAP analysis!!

5.  The violating interest is void from moment of creation.  Read grant as if the violating interest is not there.

6.  Analyze grant from date of creation:  Deed = when the grantor executed the deed  Will = when the testator died

7.  If any hypothetical fact pattern could violate RAP, then RAP is violated, regardless of how unlikely it is to happen.  No one is ever too young or too old to have children.  No one’s death is imminent regardless of how old or ill.

15.  5:00 a.m. = interest created  Deed delivered, or  Testator dies  6:00 a.m. = all lives in being give birth to a healthy baby.  Noon = all lives in being die but were successful in saving all of the babies born earlier in the day.  At 12:01 p.m., do you know for sure that the interest will vest (or not vest) by the end of the next 21 years?  If yes = RAP not violated; interest is OK.  If no = RAP is violated; interest is void

16.  1. Classify interests as written.  2. See if RAP applies to each interest.  3. If yes, apply RAP analysis.  4. If RAP violated, strike out interest.  5. Reclassify and repeat.

18.  Contingent remainder,  Vested remainder subject to open, and  Executory interest (including a trust). No other interests require a RAP analysis!!

19.  1. Classify interests as written.  2. See if RAP applies to each interest.  3. If yes, apply RAP analysis.  4. If RAP violated, strike out interest.  5. Reclassify and repeat.

20.  5:00 a.m. = interest created  Deed delivered, or  Testator dies  6:00 a.m. = all lives in being give birth  Noon = all lives in being die, but all 6:00 a.m. babies live  At 12:01 p.m., do you know without doubt that the interest will vest (or not vest) by the end of the next 21 years?  If yes = RAP not violated; interest is OK.  If no = RAP is violated; interest is void

21. “To A and his heirs for so long as no liquor is consumed on the premises.”

22. “To A and his heirs for so long as no liquor is consumed on the premises, but if liquor is consumed on the premises, then to B and her heirs.”

23. “To A and his heirs as soon as liquor is sold on the premises.”

24. “To A for life and then to those children of A who attain the age of 25 and their heirs.”  No child has attained age 25.

25. “To the American Red Cross, but if the land is not used for hospital purposes, then to The Texas Tech University School of Law.”

26. “To A for life, then to A’s children for their lives, and then to A’s grandchildren and their heirs who are living when A’s last surviving child dies.”  A has two living children, X and Y.

27.  1. Wait and see

28.  2. Expand time period

29.  3. Reformation using cy pres

30.  4. Uniform Statutory Rule Against Perpetuities  90 year period  Runs from date of grant (rather than death of lives in being)  Wait and see  If still violates, mandatory reformation

31.  5. Repeal

32. “Perpetuities * * * are contrary to the genius of a free government, and shall never be allowed * * *.”

33. (a) Within the limits of [RAP] a court shall reform or construe an interest * * * that violates the rule to effect the ascertainable general intent of the creator of the interest. A court shall liberally construe and apply this provision to validate an interest to the fullest extent consistent with the creator's intent. (b) The court may reform or construe an interest * * * according to the doctrine of cy pres by giving effect to the general intent and specific directives of the creator within the limits of [RAP]. (c) If an instrument that violates [RAP] may be reformed or construed under this section, a court shall enforce the provisions of the instrument that do not violate the rule and shall reform or construe under this section a provision that violates or might violate the rule. (d) This section applies to [interests] conveyed by an inter vivos instrument or a will that takes effect on or after September 1, 1969, and this section applies to an appointment made on or after that date regardless of when the power was created.

34.  “If a court of proper jurisdiction finds that this trust violates the Rule Against Perpetuities, the remaining trust property shall be distributed to [Beneficiary].”

36. “every first-year law student’s worst nightmare”