33 Rule provides that where there is an inter vivos conveyance of land by a

33 rule provides that where there is an inter vivos

This preview shows page 33 - 36 out of 50 pages.

33
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Rule: provides that where there is an inter vivos conveyance of land by a grantor to a person, with a limitation over to the grantor’s own heirs either by way of remainder or executory interest, no future interest in the heirs is created but a reversion is retained buy the grantor. Doctrine of Worthier Title: It was better to take by decent than by purchase. Taking as a transferee is taking as a stranger, so this doctrine disregarded the interest created in the heirs and the rule gave O a reversion. If you “will” to your heirs, under this doctrine it wouldn’t work. They can only take by decent. 2. The Rule Against Perpetuities (life in being + 21 years) THE RULE AGAINST PERPETUITIES “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”. This rule was created when the property used to be given by deed or devise. Now, property is usually given by trusts. ** if doesn’t vest w/i 21 years under CL, or FL 90 years, then it is violated, and if violated, then The rule increases alienability, because the interests subject to RAP are: Contingent Remainders Executory Interests Class Gifts What are the measuring lives? Principle problem. All property in trust where the trustee has the power of sell, shouldn’t be subject to RAP. The problem is how allocate all the values of the property if you want to sell and it’s in the hands of several people. In what ways is it possible that the interest is not going to vest??? This is the way the RAP should be looked at. If we have a designation to a person, then that person is the measuring life. Rule- No interest is valid unless it must necessarily vest, if at all, no later than 12 years after some life in being at the creation of the interest • purpose= to give more power to people with vested interest to sell property • cut off interest of contingent remainder • cut off distant future interest that will not vest in certain amount of time 34
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• does not want the “dead hand” to tie up the rights of transfer (another restriction on alienation) • does not apply to charities RULE 689.229 3 conveyances under RAP [Note #18 (p. 303)] • If the contingent interest is created by will, the life in being must be a person alive at the testator’s death. • If the contingent interest is created by an irrevocable inter vivos transfer, the life in being must be a person alive at the time of the transfer. • In case of a revocable transfer, the RAP does not apply until the transfer becomes irrevocable, and hence the life in being must be a person alive when the power of revocation cease R.A.P. applies to only such interest, which are subject to a condition precedent: The only 3 interests subject to rap are: 1. contingent remainders 2. executory interest 3. a class gift: vested remainders, subject to open page 304 problems: 3) a.)it will vest w/ 21 years of the last person who passes away does not violate against the rule of perpetiuities / b.) no, b/c they are vested.
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  • Spring '02
  • Baker
  • Fee simple, Property Possession

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