Class 16 – Future Interests III: Rule Against Perpetuities

March 8th, 2018

Class 16

 

  • Rules Furthering Marketability, 345-349
  • Common Law Rule, 349-352
  • Jee v. Audley, 352-354
  • Problems, 357-359
  • Perpetuity Reform Movement, 373-377 (skim)
  • Texas Rule Against Perpetuity

The lecture notes are here.

Thankfully, Texas has abolished the Rule in Shelley’s case, the Doctrine of Worthier Title, and the Rule Forbidding a Remainder in the Grantor’s Heirs. This is the Texas Rule Against Perpetuities.

RULE AGAINST PERPETUITIES. The rule against perpetuities applies to trusts other than charitable trusts. Accordingly, 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. Any interest in a trust may, however, be reformed or construed to the extent and as provided by Section 5.043.

In case you were wondering, the youngest mother on record is five-years old. And in a bizarre case, a man adopted his girlfriend to protect his assets.

And, if you hate the Rule against Perpetuities, blame this guy. Orlando Bridgeman, whose crazy conveyances raised the possibility of perpetuity, which led to the creation of the Rule Against Perpetuities.bridgemanDon’t blame me. Blame Orlando. Note: The Rule Against Perpetuities will not be tested on the final examination. In other words, this is a wrap for RAP.

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