GA Bar Multistate Essay 3 — Questions and Answers
Question 1: Under the common-law Rule Against Perpetuities (RAP), a future interest is void if there is any possibility it will vest more than:
- 10 years after the grantor's death
- 21 years after the death of a relevant life in being at the creation of the interest (Correct answer)
- 25 years from the date of conveyance
- 50 years from creation
Correct answer: 21 years after the death of a relevant life in being at the creation of the interest
The classic RAP voids future interests that might vest more than 21 years after the death of any life in being at the creation of the interest.
Question 2: A testator's will leaves Blackacre 'to A for life, remainder to A's children who survive A.' Under the common law, this remainder is best characterized as:
- Vested remainder subject to complete divestment
- Contingent remainder because the identities of surviving children are unknown until A's death (Correct answer)
- Executory interest shifting to A's heirs
- Fee simple determinable
Correct answer: Contingent remainder because the identities of surviving children are unknown until A's death
A remainder conditioned on surviving the life tenant is contingent because the condition precedent (survival) has not yet occurred.
Question 3: In family law, the Uniform Premarital Agreement Act (UPAA) renders a premarital agreement unenforceable if the challenging party shows:
- The agreement was signed more than 30 days before the wedding
- The agreement was not executed voluntarily or the party was not provided fair disclosure of assets (Correct answer)
- Any provision is more favorable to one spouse than the other
- The agreement was not reviewed by independent counsel for both parties
Correct answer: The agreement was not executed voluntarily or the party was not provided fair disclosure of assets
Under the UPAA, involuntary execution or inadequate disclosure of property and financial obligations are the primary grounds for voiding a premarital agreement.
Question 4: A testator executes a valid will, then later executes a second will with a clause expressly revoking all prior wills. If the testator destroys the second will, which doctrine may revive the first will?
- Dependent relative revocation (DRR) (Correct answer)
- Anti-lapse statute
- Exoneration of liens
- Doctrine of ademption
Correct answer: Dependent relative revocation (DRR)
DRR holds that revocation of the revoking instrument may be conditional on the revival of the earlier instrument, potentially reinstating the first will.
Question 5: Under the Uniform Trust Code, a trustee's duty of loyalty is violated when the trustee:
- Invests trust assets in index funds without consulting beneficiaries
- Engages in self-dealing by purchasing trust property for personal account (Correct answer)
- Retains a professionally managed diversified portfolio
- Distributes income to income beneficiaries annually
Correct answer: Engages in self-dealing by purchasing trust property for personal account
The duty of loyalty prohibits self-dealing transactions where the trustee acts in a personal capacity adverse to the trust's interests.
Question 6: Under Georgia equitable distribution principles, property acquired by one spouse through inheritance during the marriage is generally classified as:
- Marital property subject to division
- Separate property not subject to division (Correct answer)
- Commingled property divided 50/50
- Presumptively marital unless traced to premarital funds
Correct answer: Separate property not subject to division
Georgia follows equitable distribution and treats inherited property as the recipient spouse's separate property, not subject to division upon divorce.
Question 7: Under the Restatement (Third) of Trusts prudent investor rule, a trustee's investment decisions are judged:
- Security by security in isolation at the time of purchase
- In the context of the overall portfolio and the trust's investment strategy (Correct answer)
- By the performance of comparable mutual funds
- Based on whether the investment produced income for current beneficiaries
Correct answer: In the context of the overall portfolio and the trust's investment strategy
The prudent investor rule evaluates investments in the context of the overall portfolio strategy rather than in isolation.
GA Bar Multistate Essay 3
Under the common-law Rule Against Perpetuities (RAP), a future interest is void if there is any possibility it will vest more than: