Reference no: EM131908216

Question: 1. Instead of "lives-in-being plus 21 years," the rule might be "lives-in-being plus 10 years," or "lives-in-being plus 35 years." Compare these rules as means for "generation-skipping."

2. Suppose that a testator imposes a condition that cannot be met. For example, the decedent gives her property to be used for a medical school in Lebanon, Indiana, but after the testator's death, the State of Indiana abandons its plans to build a medical school there. In this situation, American courts apply the doctrine of cypres (pronounced "see pray" and meaning, in law French, "so nearly" or "as near as possible"). Under that doctrine the court will find an alternative condition that is as close as possible to the decedent's intentions. For example, the proceeds from the sale of the decedent's property in Lebanon, Indiana, might be given to a medical school located somewhere else. Use the concepts of circumvention costs and depletion costs to provide an economic rationale for this rule.