A homeowner, who resides in State A, inherited a parcel of land located in State B from their deceased relative. State A applies the common law Rule Against Perpetuities, while State B has adopted a statutory version of the Rule Against Perpetuities that includes a ‘wait-and-see’ provision. The deceased relative executed a will in State A that purported to create a contingent remainder involving the parcel of land, which would benefit the homeowner’s grandchild if certain conditions were met within 25 years. The grandchild, however, is not yet born. A dispute arises among the heirs about whether the contingent remainder is valid. Which state’s law governs the determination of the validity of the contingent remainder?
The law of State B, where the parcel of land is located, governs the validity of the contingent remainder.
The law of the homeowner’s domicile in State A governs the validity of the contingent remainder.
The choice of law provision in the will determines whether State A or State B law applies to the contingent remainder.
The law of State A, where the will was executed, governs the validity of the contingent remainder.
The correct answer is based on the principle that the validity of future interests in real property, such as a contingent remainder, is generally governed by the law of the state where the real property is located (lex loci rei sitae). This rule ensures consistency and predictability in how real property interests are treated, as each state has its own rules regarding the creation and enforcement of such interests.
Why other answers are incorrect:
The law of the state where the will was executed does not govern the application of real property rules, as real property’s situs takes precedence.
The choice of law provisions in the will itself, while potentially influential for personal property, generally do not override the territorial principle for real property.
The domicile of the homeowner is also irrelevant to determining rules governing real property, as the situs state’s laws maintain control.
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What is the Rule Against Perpetuities?
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What does 'wait-and-see' mean in the context of the Rule Against Perpetuities?
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Why does the law of the state where the property is located govern its validity?