Rule Against Perpetuities (Statutory)

The Rule Against Perpetuities (RAP) in California prevents property interests from being tied up indefinitely. A nonvested interest must either vest within a certain time frame, measured by lives in being plus 21 years, or it must vest or terminate within 90 years of its creation to be valid.

A testator leaves a trust for their grandchildren, stating that the trust will distribute funds when the youngest grandchild turns 30. If the youngest grandchild is currently 5 years old, the trust will not vest until they are 30, which is 25 years from now, well within the 90-year limit. Therefore, the trust is valid.

No waiting forever: interests must vest within 90 years or follow the lives-in-being rule!

Exams often include scenarios where students miscalculate the vesting period or overlook the 90-year rule, leading to incorrect conclusions about validity. Watch for tricky phrasing that makes you doubt the straightforward application of the rule.

Questions frequently present hypothetical wills or trusts that challenge students to determine if interests are valid under the RAP, often including multiple generations or complex conditions to test understanding.