RAP applies to which of the following interests?

• A. Contingent remainders
• B. Vested remainders
• C. Present interests only
• D. None of the above

Answer: (A)

Rule Against Perpetuities governs when future interests can vest, aiming to keep vesting within a life in being plus 21 years. Contingent remainders are future interests that take effect only if a condition occurs, so their vesting is uncertain at the outset. Because that vesting could potentially happen outside the allowed time frame, RAP applies to contingent remainders to test and often constrain them. A vested remainder, on the other hand, is fixed and certain to vest within the permitted horizon, so it isn’t subject to RAP. Present interests are not future interests at all, so they aren’t governed by RAP. So the interest type that RAP applies to is contingent remainders.