ESTATES AND FUTURE INTERESTS

Question 1

For Support- Questions to ask yourself

Answer 1

1. What is the language needed to create the estate?
2. what are the estates defining characteristics
   a. duration
   b. alienable? transferable during the holder’s lifetime (aka intervivos)
   c. devisable? can it pass by will?
3. What future interest is the Estate capable of?

Question 2

Three Main Ways to Transfer Real Property

Answer 2

1. Transfer by Deed
2. Transfer by Will
3. Transfer by Interstate Succession

Question 3

Deed

Answer 3

A living person can transfer property by deed.
- conveyance or grant- completed transfer by deed.

Question 4

Will

Answer 4

the property of a descendant may be transferred by a will
- devise- completed transfer of real property by will

Question 5

Interstate succession

Answer 5

if a person dies without a will, her property will be distributed according to state statutes, usually to e

Question 6

what are the three terms of how property can be distributed

Answer 6

1. freely alienable
2. devisable
3. descendible

Question 7

freely alienable

Answer 7

it can be sold or given away during the owner’s lifetime

Question 8

devisable

Answer 8

it can be transferred by will at death

Question 9

descendible

Answer 9

it can pass by the laws of interstate succession if the owner dies without a will
- think descendants

Question 10

For Support- What are the types of Freehold Estates (don’t need to memorize this- it is on the chart)

Answer 10

1. Fee Simple Absolute
2. Life Estate
3. Fee Tail
4. Fee Simple Determinable (Defeasible)
5. Fee Simple Subject to a Condition Subsequent (Defeasible)
6. Fee Simple Subject to an Executory Limitation (Defeasible)

Question 11

Fee Simple Absolute

Answer 11

“To A in fee simple”

• this is the most straightforward type of fee simple ownership. It is a form of freehold, meaning that the grantee holds ownership over the land with no restrictions- which means that they may use the land as they desire.

Question 12

Fee Simple Determinable

Answer 12

“To A as long as”

• fee simple estate that automatically ends when a certain event or condition occurs, giving the right of possession to the transferor.
• duration of the fee simple will be cit short if the event or condition happens.
• ^^ gets taken away when the thing happens.

Question 13

Fee Simple subject to Condition Subsequent

Answer 13

“To A, provided that” “on condition that “ “but if”
- created in a transfere that may be terminated if a condition is met or if an event occurs, this means that the estate holder mat or may not lose the right to land.
- However, this differs from fee simple determinable because the transfer of right is not uautomatic and the state holder here would be able to continue ownership until the right is asserted.

Question 14

Fee Simple Subject to an Executory Limitation

Answer 14

• To A, as long as… while…”
• this is just a fee simple determinable or a dee simple subject to condition sub but just where the future interest is held by a 3rd party.
• basically this is when there is a third party involved where the future interest is held by a 3p.
• EXAMPLE- O conveys to the First Baptist Church provided that the land issued as a church and then

Question 15

Fee Tail

Answer 15

“To A and the heirs of his body”
- property is transferred depending on the lives of the lineal descendants of a particular person. Keeps land within the family, therefore guarding the wealth and prestige.

Question 16

Life Estate

Answer 16

“To A, for life” “To A, until he dies”
- Alienable doctrine of waste
- imposes a duty on life tenant to use property in a way that does not injure the rights of future interest holders.
- SUBJECT TO WASTE- KNOW THE KINDS OF WASTE!!!

Question 17

Life Estate - pur auto view

Answer 17

For the life of another
- O can give B a life estate “for the life of C”
- when C dies, B’s estate ends.

Question 18

Terms of years

Answer 18

• “To A, for 20 years,
• SUBJECT TO WASTE

Question 19

Types of Waste

Answer 19

1. Voluntary
2. Permissive
3. Ameloriorative

Question 20

Type of Waste 1- Voluntary

Answer 20

voluntary- affirmative act that significant reduces the value of the property
(sometime called affirmative waste)

Question 21

Type of Waste 2 - Permissive

Answer 21

results from failure to take reasonable care to protect the estate
(failing to make minor repairs to to pay property taxes)

Question 22

Type of Waste 3- Ameliorative

Answer 22

affirmative act that leads to a substantial change in the property and increased its value

Question 23

NEED NOT MEMORIZE

**Future Interests - Retained by Transferor

Answer 23

1. Reversion
2. Possibility of Reverter
3. Right of Entry

Question 24

NEED NOT MEMORIZE

Future Interests- Created in Transferee

Answer 24

1. Remainder
2. Executory Interests

Question 25

1. Remainders

Answer 25

Future interest in trasnferee that 1. is capable of becoming possessory immediately upon the expeirantion of the prior estate 2. does not divest any interest in a prior transferee | (may follow a life estate, fee simple absolute, fee tail =, term of year

Question 26

Kinds of remainders

Answer 26

1. vested * indefesibly * subject to divestment * subject to open 2. contingent

Question 27

Vested Remainder * Indeafeasibly vested

Answer 27

1. created in an ascertainable person 2. Not subject to a condition precendent other than natural termination of prior estate

Question 28

Vested Remainder * Subject to divestment

Answer 28

1. created in an ascertainable person and 2. is nit subject to a confition precedent, BUT 3. is subject to a condition subsequent * example- O conveys to B for life, then to D, but if D does nor survive B, then to E - If D dies before B his interest will be terminated

Question 29

Vested Remainder * Subject to open

Answer 29

1. Created in an ascertainable person but that class may be enlarged in the future * ex- O conveys to B for life, then to D's children- if D only has two children at the time. 2. Not subject to a condition precedent

Question 30

Contingent Remainder

Answer 30

Either (1) given to an unascertainable person, and (2) subject to a condition precedent - Ex: to B for life, then to D if D becomes president - ex: to B for life, then to D's children who attain age 18.

Question 31

2. Executory Interests

Answer 31

must divest (cut short) another estate/interest to become possessory. - There are two kiinds of executory interests (covered in later cards)

Question 32

Executory Interest 1 - Springing

Answer 32

Follows an interest in the transferor- follows a gap in time * eg- O conveyed to A for lide, then one year after A's death to B and his heirs. *note* this does not divest interest from A but it does divest possessory interest from O following A's death.

Question 33

Executory Interest 2- Shifting

Answer 33

Follows an interest in a transferee. - Ex: O conveyed to A and his heirs, but if A uses the land for commericial purposes, then immediately to B and his heirs.

Question 34

Reversion

Answer 34

A transferor retains a reverson when she conveys a smaller vested estate than the one she has. * this is when the original grantor of the original conveyance retains the righ to future possession of the property. * A common example of this is in a leasehold esttae, in which the lessee has the right to use and occupy the property for a specified period of time, when the lease terms ends, teh property reverts to the lessor. * basically the right to resume possession of ownership of a peorperty after a period of time has elapsed or certain events have occurred. - ex: O ownes a fee simple absolute in Greenacre and conveys Greenacre to "B for life" Fee simpl

Question 35

Possibility of Reverter

Answer 35

The future interest retained by the transfeor who holds a fee simple absolute, but conveys a fee simple determinable

Question 36

Right of Entry

Answer 36

The future interest retained by the transferor who holds a fee simple absolute, but conveys a fee simple subject to a condition subsequent. - Ex: O conveys Greenace to "B and her heirs, provided that if b fails to use it as a farm, then O may re-enter and reclaim the property." - so basic ally, O's right of entry does not become possessory until and unless O takes affirmative steps to regain possession.