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UNIFORM STATUTORY RAP [USRAP]
– In 1995, legislation was enacted that significantly changed the treatment of property interests like contingent remainders, vested remainders subject to open, and executory interests that were previously governed by the common law rule against perpetuities [RAP]. If created on or after October 1, 1995, the validity of such interests is determined under the Uniform Statutory Rule Against Perpetuities [USRAP].
– Determining validity of interests under USRAP
• (a) interests that would have been valid under the common law RAP (i.e., are certain to vest or fail within a life in being + 21 years) remain valid under USRAP.
• (b) interests that do not meet the test of the common law RAP are not void ab initio. USRAP adopts a wait-and-see approach to such interests and they become void only if they actually fail to vest or terminate within 90 years of when they were created.
– Note: Even if the interest becomes invalid after expiration of the 90-year waiting period, a person with an interest in the property can petition for reformation.