Prop1 Class 14: Future Interests III: Rule Against Perpetuities

February 28th, 2013

The lecture notes are here, and the live chat is 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.

Note: The Rule Against Perpetuities will not be tested on the final examination. In other words, this is a wrap for RAP.