Rule of convenience: class closes when?

Rule of convenience: class closes when?

• A. Upon termination of preceding interest
• B. At the time the grant is made
• C. Upon birth of the first member
• D. Upon vesting of all interests

Answer: (A)

In class gifts, the pool of beneficiaries is fixed by the rule of convenience. The class closes when the preceding interest ends, typically when the measuring life or life estate terminates (for example, at the grantor’s death). Once that happens, no later-born individuals can join the class, so the distribution is made from a fixed group. That’s why closing upon termination of the preceding interest is the best choice. Closing at the grant’s date would freeze the class too early; closing at birth would let later-born individuals join; and closing upon vesting conflates vesting of interests with when the class is fixed for distribution.

In class gifts, the pool of beneficiaries is fixed by the rule of convenience. The class closes when the preceding interest ends, typically when the measuring life or life estate terminates (for example, at the grantor’s death). Once that happens, no later-born individuals can join the class, so the distribution is made from a fixed group.

That’s why closing upon termination of the preceding interest is the best choice. Closing at the grant’s date would freeze the class too early; closing at birth would let later-born individuals join; and closing upon vesting conflates vesting of interests with when the class is fixed for distribution.