Which interests are subject to the Rule Against Perpetuities?

• A. Reversions and possibilities of reverter.
• B. Contingent remainders; vested remainders subject to open; executory interests; powers of appointment; rights of first refusal & options.
• C. All future interests.
• D. Only fee simple determinable.

Answer: (B)

The rule against perpetuities limits how long a future interest can be tied to events that might occur far in the future, by requiring that it vest, if at all, within a life in being at the instant of creation plus 21 years. The Interests that typically fall under this rule are contingent remainders; vested remainders subject to open; executory interests; powers of appointment; and rights of first refusal and options. These are future interests whose vesting can be uncertain and potentially occur after a long period, so they must be tested to see if they could vest outside the permitted timeframe.

Reversions and possibilities of reverter, by contrast, are retained by the grantor and vest automatically when the preceding estate terminates; they generally aren’t subject to RAP because they don’t create uncertain vesting in another person. That’s why they’re not included in the list of RAP-subject interests.

The other choices are off because RAP doesn’t apply to every future interest (notably present interests or certain grantor-retained interests) and it isn’t limited only to fee simple determinable. The best answer captures the typical RAP-subject categories.