The Rule Against Perpetuities

a. Common Law Rule

No interest is good unless it must vest, if at all, not later than twenty-one years after some
life in being at the creation of the interest
b. Mechanics of the Rule
First step is to determine whether the future interest in question is even subject to the rule
i. Applies only to interest not vested at the time of the conveyance that creates them
ii. Three interests:
1. Contingent remainders
2. Executory interests
3. Class gifts
iii. Not subject:
1. Present estates
2. Future interests in the grantor (possibility of reverter, rights of entry)
3. Vested remainders (except Class gifts)
4. Charitable trusts
Next step, determine whether the given interest might not vest within the perpetuity period
of lives in being plus 21 years
i. It strikes down interests that might vest too remotely
ii. The essential thing to grasp about the Rule is that IT IS A RULE OF LOGICAL PROOF
1. Must prove the contingent remainder is certain to vest or terminate no later
than 21 years after the death of some person alive at the creation of the
interest
Validating life anyone that is in being at or before the time at which the interest in question
was created.
i. You are looking for the validating life to prove that a contingent remainder will vest
ii. If a transfer creates more than one interest subject to the Rule, you must test the
validity of each interest separately. One may be valid and the other may not be.
c. Class gifts:
all or nothing rule
A class gift is not vested in any member of the class until the interest of all members have
vested.
This is a rule of convenience
Under the Rule of Convenience, a class will close as soon as one member of the class is
entitled to immediate possession or enjoyment, even if this means closing the class before it
closes naturally, or physiologically that is, when the possibility of births ends.
d. Future Interests in Transforers; Executory Interests Following defeasible fees; and Options
Future interests retained by the transferor are not subject to the Rule.
Notes:
Rule of logical proof
Imposes a maximum time limit on the potential for contingent future interests
life in being = measuring life = validating life
o is a natural person who was alive when the interest was created (when the deed was
delivered or when the testator died)
First label all the interests, decide if theyre subject to the Rule, then decide who is the future
interest
Class Gifts:
o A devise or conveyance to a described group of people whose identity is not ascertainable at
the time the devise or conveyance is made.
o A vested remained subject to open is one type of class gift.
o They often allow an afterborn person to become part of the gift.
o Class closing/rule of convenience:
Someone qualifies for distribution of the property
The property is available for distribution. When the class gift is a future interest, this
means that any prior estates have expired
Once the class gift closes, no afterborn children are allowed.

If the interest of one potential afterborn member of the class violates the Rule, the
entire class is struck down
All or nothing rule
If anything can conceivably happen, assume it will.