Rule Against Perpetuities - Create, Kill, Count
Posted: Sun Oct 21, 2012 11:07 am
Can someone please explain this create, kill, count method to me? I am so not getting it.
Day 1: grant
Day 2: afterborn child
Day 3: kill everyone alive on day one.
Start counting and the grant would need to vest or fail within 21 years in order to be valid.
Edit:
G=> To A and his heirs when G receives $X
Day 1 – Grant
Day 2 – afterborn child of A heirs
Day 3 – Kill everyone alive on Day 1
Is it possible child born on day 2 could pay G or his after 21 years?
He could pay after 21 years in violation of the rule
Because of this “and his heirs” is wiped out
If you add w/in 21 years then it would be okay
Most well written instruments will contain a savings clause to save the interest
How can we make it more than 21 years?
G=> To A and his heirs when G receives $X, option not to be exercised by A or his heirs later than 21 years after the death of certain people alive
Only when savings clauses are not put in there is a violation of the rule of perpetuities