Estates and Future Interests Flashcards
Total ownership end of the spectrum
Fee simple absolute
If I lease my land to Mr. X, who owns it?
Mr. X’s interest in the land includes the right of present possession. He has the right to be there and live there and use the land as set forth in the lease. But what happens to that interest in land once the lease expires? That interest in the land reverts back to me once Mr. X’s lease is up.
But for now, and for as long as the lease is in effect, Mr. X has a present possessory interest in the land. Because I still have an interest in possessing the land once Mr. X’s lease is up, I have a future interest in the land. I own the right to future possession. In fact, I have a present interest (that is, a current interest) in future possession.
How do we determine what O transferred to A?
1-Identify the basic estate that O transferred to A.
2- Determine whether the estate is modified or unmodified.
3- If it is modified, determine how it is modified.
4- Name it.
Once you know what O has transferred to A, you then determine what’s left, determine who holds it, and accurately name it.
What words indicate a fee simple absolute?
To his/her heirs
O to A and his/her heirs
Fee simple absolute
O to A for life
Life estate
What is a life estate?
My estate is potentially infinite to start but I give a piece of it to someone else for the duration of their life, it may return back to me or my heirs
O to A for as long as B lives
Life estate pur autre vie
O to A for 10 years
term of years
O to A and the heirs of her body
Fee tail female (can also be male)
O to A and their issue
Fee tail
What is the duration of a fee tail?
Until the bloodline ends
What is the duration of a life estate?
Until that person dies
What is the duration of fee simple absolute?
Potentially infinite
Reversion
A reversion is the future interest that the grantor retains when the estate that the grantor granted is one that terminates naturally (that is, not by the happening of any specific condition).
Types of Estates that are subject to reversion
Life estate, fee tail, and fee for a term of years are examples of estates that terminate naturally
Possibility of Reverter
A possibility of reverter arises when what O granted to A is some form of determinable estate, where there is a condition upon which the estate returns to the grantor. What the grantor has left is called a possibility of reverter.
Types of estates subject to possibility of reverter
any type of determinable estate—fee simple determinable, life estate determinable, or fee tail determinable
Right of Reentry/Power of Termination
A right of reentry (right of entry, power of termination, right to retake, etc.) arises when O has granted A any estate in a “subject to a condition subsequent” form, meaning that should the condition occur O may exercise an option to reenter and retake possession of the estate. The right of reentry is a future interest that the grantor creates for themselves and it depends on circumstances and language.
Types of estates subject to right of reentry/power of termination
It can occur with a fee simple subject to condition subsequent, a life estate subject to condition subsequent, etc.
The three ways each type of estate can be modified
determinable, subject to condition subsequent, subject to executory limitation
If O transfers a fee simple subject to a condition subsequent, what is the future interest?
Right of entry/power of termination
If O transfers a fee simple determinable, what is the future interest?
Possibility of reverter
If O transfers a fee subject to executory limitation, what is the future interest?
No future interest in O (it’s with a third party)
What is a remainder?
Future interests that follow the termination of estates that terminate naturally
Two basic types of remainders
Vested remainder, Contingent Remainder
A remainder is vested when…
1) the grantee is an ascertainable person, and 2) there are no conditions precedent to that person taking the estate
A remainder is contingent when…
1) there is a condition precedent to the grantee taking the estate, or 2) the grantee is unascertainable
If O owns a fee simple absolute, what are three ways she could convey part of it- a smaller estate- to A?
1) vested remainder 2) Contingent Remainder with unascertainable remainder, 3) Contingent remainder with unsatisfied condition precedent
What is B receiving if “O to A for life, and then to B””?
Vested remainder
What are B’s heirs receiving if “O to A for life, and then to B’s heirs”?
contingent remainder with unascertainable remainder
What is B receiving if “O to A for life, and then to B if B marries C” and B has not married?
contingent remainder with unsatisfied condition precedent
Three types of vested remainders
indefeasibly vested, subject to open, subject to divestment
When is a vested remainder indefeasibly vested?
when it is created in an ascertainable person and not subject to a condition precedent
When is a vested remainder subject to divestment?
when it is subject to a condition and could cause the interest to be taken away or lost before the grantee ever gets it
When is a vested remainder subject to executory limitation?
when it is subject to a condition that could cut short the interest only after or during the time that remainderman is in possession of the estate.
What is an executory interest?
If you’ve got a future interest in a grantee, and it’s not a remainder, then it’s an executory interest
When does an interest spring?
An interest springs from the preceding estate, if that estate was in the grantor.
When does an interest shift?
An interest shifts from the preceding estate, if that estate was in a grantee.
