MBE Rules · Real Property

Class gifts — closing and RAP

The rule

A class gift is a gift to a group described collectively (e.g., "to A's children") whose membership can increase or decrease until the class closes. Under the rule of convenience, the class closes when any member is entitled to possession; under the all-or-nothing rule for RAP, if the gift to any potential class member could vest too remotely, the entire class gift fails.

In plain English

Class gifts matter for two questions: (1) who is in the class when distribution happens, and (2) whether the Rule Against Perpetuities knocks the gift out. If even one hypothetical class member might vest more than 21 years after a life in being, the whole class gift is void.

How examiners test it

A grants "to A's grandchildren who reach 25" while A is alive — classic RAP class-gift failure.

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