Class Gifts
↳ Rules
● Physiologically → when no more class members can be produced, usually at the death of a “parent”
● Rule of Convenience → when a class member is entitled to possession
↳ Gifts of Income
● Traditionally → income is distributed to grandkids and not the grandkid’s issue
● Modern → the grandkid’s issue take by representation, because the settlor intended the share to be paid to the issue
of the deceased income B
↳ Simple Generational Classes:
● To children, nieces, cousins,
● There is no implied condition of survivorship
● Watch for language of survivorship
↳ Multi-Generational Classes:
● Issue, descendants, heirs
● Implied condition of survivorship
● Determine the heirs as of the date of the death of the named individual (Majority Rule)
● Life tenant must have died before any remainder-person is entitled to possessionGifts to Children, Issue, descendants
↳ Children → only immediate offspring
● Issue
■ By representation or per capita?
○ (Modern) Representation → only living descendants of nearest degree in each line of descent take
○ (Traditional) per capita → all of A’s descendant’s alive on the distribution date take an equal share
■ What form of representation ?
○ Modern → apply the representation in the state intestacy statute UNLESS the instrument says “per stirpes”
which triggers per stirpes ( UPC 2-708, 2-709 )
○ UPC → divide at the level of survivors, as many as there are survivors or deceased members who leave
surviving issue
○ Adoption and Assisted Reproductive Technology → UPC What form of representation? 2-705
↪ Rule against Perpetuities and Class Gifts
↳ RAP → law that prevents a trust from lasting indefinitely and sets a max term (lives in being +21 years)
↳ All or Nothing Rule → class gifts must be valid for all members of the class or it is valid for none. If interest of 1 is too
remote, the entire class gift is void
● “To A for life, then to A’s children for life, and then distribute the property to A’s grandchildren”
■ Remainder to A’s grandkids is void → not every member of the class