Estates & Future Flashcards
1
Q
If a decedent has no heirs or devisees’ the interests in the land go’s to the state
A
Escheat
2
Q
A person does this when that person transfers its land to another
A
Convey
3
Q
The owner who posses the land now own the?
A
Possessory estate
4
Q
The owner who has the right to posses the land in the future
A
Future interest
5
Q
The largest of the estates. Has no inherent ending.
A
Fee simple.
6
Q
If O conveys land to A but A cannot sell, give, or devise the right to possession after A’s death. When A dies the land passes automatically to A’s issue. Regardless of will.
A
Fee tail
7
Q
Inherently limited estates. Will end naturally.
A
Fee tail
8
Q
O to A and the heirs of his body
A
Fee tail
9
Q
Is inherently limited in duration. The owner only has the right to posses the land during their lifetime.
A
Life estate
10
Q
Commonly known as a lease. Right to own the land accompanied by a particular responsibility.
A
Term of years.
11
Q
O to A for number of years.
A
Term of years.
12
Q
A grantor who does not use words of limitation is presumed to intend to convey
A
all that the grantor could convey.
13
Q
Future interest retained by the grantor
If the grantor conveys “to A for life”, the future interest is retained by the grantor and the future interest is called a
A
Reversion
14
Q
Future interest held by a third party
If the grantor conveys “to A for life, then to B”, the future interest is held by a third party (here, B) and the future interest is called a
A
Remainder
15
Q
- Fee simple absolute
- Fee simple determinable (with possibility of reverter)
- Fee simple subject to a condition subsequent (with power of termination or right of reentry).
- Fee simple subject to executory Interest
- Fee tail
- Life estate
A
Categories of freehold estates
16
Q
vested remainders contingent remainders executory interest reversion possibility of reverter rights of reentry--power of termination
A
6 types of future interests
17
Q
A fee simple estate which will automatically revert to the grantor if some specified event happens
A
Fee simple determinable
18
Q
Words like “so long as,” “during,” “while,” “until.” “To b + his heirs as long as property is used for charitable purposes”
A
How fee simple determinable is created
19
Q
Interest in land retained by grantor in fee simple determinable estate
A
Possibility of reverter
20
Q
A fee simple estate which MAY be terminated by grantor who has power to end the estate upon the happening or non-happening of a named event
A
Fee simple subject to condition subsequent
21
Q
The future interest retained by the grantor in a fee simple subject to condition subsequent.
A
rights of reentry
22
Q
words like “on condition that,” subject to condition that,” “but if” “so long as”
Express right of reentry no essential–evidence of intent to resolve ambiguity is admissible.
A
How fee simple subject to condition subsequent is created
23
Q
Fee simple estate which passes to a grantee other than the grantor upon the happening or non-happening of a stated event.
A
Fee simple subject to executory limitations
24
Q
Estate that is inheritable only by specified descendants of the original grantee.
A
Fee Tail
25
Life estate measured by the life of someone other than the grantee
Life estate pur autre view
26
the future interest in land remaining when a grantor transfer a lesser estate (fee tail, life estate, contingent remainder) than the grantor owned. A reversion occurs automatically upon the termination of the prior estate.
Reversion
27
2 types of remainders
1. vested remainder
| 2. contingent remainder
28
1. created in an ascertained, existing person
2. not subject to any express condition precedent except the normal termination of the preceding estate.
3. Not subject to RAP
4. Remainderman has right against prior estate owner (e.g. life tenant) for waste
5. Remainderman has right to compel prior estate owner to pay taxes + interest on encumbrances.
Vested remainder
29
Any remainder that is
1. not vested
2. subject to condition precedent
3. created in favor of an unborn person OR created in favor of an existing but unascertained person.
4. Subject to RAP
5. Remainderman has no right against prior estate owner (e.g. life tenant) for waste.
6. Remainderman CANNOT compel estate owner to pay taxes or interest on encumbrances.
Contingent remainder
30
Future contingent interest created in favor of a grantee in the form of springing or shifting use which on the happening of the contingency described will be executed into a legal estate. An executory interest either cuts off another's interest or begins after the natural termination of a preceding estate. Any future interest created in a 3rd person that is not a remainder.
Executory interest
31
1. Always in favor of 3rd person (not grantor)
2. always contingent + can never be vested, because when it vests it is no longer an executory interest.
3. It must take effect either before in derogation of the preceding estate or after natural termination
elements of an executory interest
32
it can be sold or given away during the owner‟s lifetime
Alienable
33
it can be transferred by will at the owner‟s death
Devisable
34
it can pass by intestate succession if the owner dies without a will
Descendible
35
Fee Simple Determinable
Fee Simple Subject to Condition Subsequent
Fee Simple Subject to Executor Interest/Limitation
3 Defeasible Fees
36
Fee simple estate that automatically ends when a stated event or condition occurs
Grantor (and his heirs) retain a future interest called a possibility of reverter
Look for words of duration: so long as, while, until, during
Fee Simple Determinable
37
To Florida Coastal while the property is used as a law school”
Fee Simple Determinable
38
“To A and his heirs so long as no alcohol is sold on the property”
Fee Simple Determinable
39
“To B provided that the land is used as a farm”
Fee Simple Subject to Condition Subsequent
40
“To B and his heirs on the condition that the land is used as a farm, and if it is not, then grantor may reenter and reclaim the property”
Fee Simple Subject to Condition Subsequent
41
Fee simple estate created in a grantee that is followed by a future interest in a 3rd party
Always followed by a future interest called an executory interest
Characterized by the same words that characterize the other defeasible fees: so long as, while, during, until, provided that, but if, on the condition that – but followed by the magic words then to
Fee Simple Subject to Executory Interest
42
“To B provided that the land is used as a farm, then to X”
Fee Simple Subject to Executory Interest
43
“To B and his heirs provided that the land is used as a farm, and if it is not, then to X”
Fee Simple Subject to Executory Interest
44
An existing, nonpossessory property right that may become possessory in the future
In other words, it is an estate that does not entitle the owner to possession immediately, but will or may give the owner possession in the future
It is a present, legally protected property right – even though the owner of the future interest does not have the present right to possession
Future Intrest
45
Future interests are either:
Vested (meaning the interest will become possessory at some point) or
Contingent (meaning the future interest may or may not ever become possessory)
46
is retained by the grantor when he conveys an estate that is less than the estate he holds
When the owner of the FSA conveys a life estate or term of years but names no 3rd party as the grantee of the remainder, the owner retains a
Reversion
47
is retained by the owner of the FSA when he conveys a FSD
This future interest “becomes possessory” when the FSD ends
Remember: the FSD automatically ends if the stated condition is violated
Possibility of Reverter (Follows the conveyance of a FSD)
48
is retained by the owner of the FSA when he conveys a FSSCS
In a FSSCS, the grantor retains the right - but not the obligation - to terminate the grantee’s estate if the condition is violated
The right of entry does not become possessory unless and until the grantor takes action to regain possession
Right of Entry
49
Indefeasibly vested remainder (vested remainder)
Vested remainder subject to divestment
Vested remainder subject to open
Contingent Remainder
Remainders
50
“waits patiently”; it cannot cut short the earlier estate
Remainders
51
It is created in an ascertainable person , AND
It is not subject to any express or implied condition precedent (other than the natural termination of the prior estate)
A person is “ascertainable” if he/she is alive and identifiable at the time of the transfer
Vested Remainder
52
remainder subject to divestment is a remainder that is vested but it is subject to a condition subsequent
look for the words “but if” following the grant to the person receiving the remainder
Vested Remainder Subject to Divestment
53
is a remainder that:
Is created in favor of a class of people that may increase in number, AND
At least one member of the class has already satisfied the requirements for having a vested interest:
This future interest arises when the grantor or testator makes a “class gift” (a conveyance to children or grandchildren as a group, without specifically listing their names)
Class can Close either Naturally or by Rule of Convenience
Vested Remainder Subject to Open
54
is a remainder that is either:
Created in favor of an unborn child or an unascertainable/unidentifiable person, OR
Created with an express condition precedent (other than the expiration of any prior interests created in the same instrument) that must be satisfied before the remainder can become a present interest
Contingent Remainder
55
Two contingent remainders, with the second expressly contingent on the first failing to vest
ALTERNATIVE CONTINGENT REMAINDERS
56
A contingent remainder must vest prior to, or at the moment, the preceding finite estate ends, or the contingent remainder is destroyed by operation of law.
A contingent remainder is destroyed if it is still contingent when the prior estate ends.
DESTRUCTIBILITY OF CONTINGENT REMAINDERS
57
If a grantor attempts to create a remainder or an executory interest in the grantor’s own heirs, the conveyance is converted into a future interest retained by the grantor
The remainder or the future interest in the grantor’s heirs (who are unascertainable) becomes a future interest in the grantor (who is ascertainable)
Doctrine of Worthier Title
58
A grantor or testator cannot give a life estate to “A”, and in that same instrument attempt to give a remainder to the heirs of “A”, or to the heirs of the body of “A”
The Rule does only one thing:
It converts an attempted conveyance of a remainder to A’s heirs into a vested remainder in FSA in A
Rule in Shelleys Case
59
A future interest is VOID if:
It is in a 3rd party grantee, and
It is a contingent remainder, an executory interest, or a vested remainder subject to open, and
It might still exist and still be contingent or open longer than 21 years after the death of the last person alive at the time of the conveyance
An interest is VALID if:
We know for sure that it will do one of the following within the perpetuity period (within 21 years after the death of everyone alive at the time of the conveyance):
Vest and close, or Fail
RAP
60
The condition is not personal to someone
The stated time period is more than 21 years
Interest goes to a generation after the next (grandchildren)
Conveyance requires the holder to survive someone who is merely described but not named
An event would normally happen within 21 years - but it is possible it may not
The holder will not be identified until the death of someone merely described but not named
RAP Danger Signs
61
Step 1: Create someone in whom the interest could vest.
By creating this person after the conveyance, he or she cannot qualify as a life in being for purposes for the perpetuities time period.
Step 2: Kill everyone who was alive at the time the property interest was created.
By killing everybody who was alive at the time the property interest was created, we take care of all the possible lives in being so we do not have to worry about identifying the right measuring life.
Step 3: Count 21 years.
If it is possible (no matter how outlandish) that the future interest could vest, but only after the 21 year period, then RAP has been violated.
RAP Test
62
RAP only Applies to
Contingent Remainders
Executory Interests
Vested Remainders Subject to Open
63
Accordingly, the courts concluded that contingent remainders, executory interests, and vested remainders subject to open had to “vest,” if at all, within the “lives in being” plus 21 years, or else the future interest was void from its attempted creation.
RAP
64
No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.
RAP
65
if the interest divests the grantor, it is a
springing executory interest
66
if the interest divests anyone other than the grantor
shifting executory interest
67
A future interest held by a grantee that divests another estate or interest to become possessory or
A future interest that follows a defeasible fee where the interest goes to another grantee rather than returning to the grantor or the grantor’s heirs/estate
Executory Interests
68
O To A for life, then to B and her heirs, but if B stops using the land for educational purposes, then to C and her heirs. What is the status of title?
A has a life estate
B has vested remainder in fee simple subject to an executory interest (FSSEI)
C holds a shifting executory interest in FSA
69
O To A for life, then to B and her heirs, but if A stops using the land for educational purposes, then to C and her heirs. What is the status of title?
A has a life estate
B has a vested remainder subject to divestment in fee simple subject to an executory interest (FSSEI)
C holds a shifting executory interest in FSA
70
O To A for life, then to B and her heirs, but if A stops using the land for educational purposes, then O has the right to re-enter. What is the status of title?
A has a life estate
B has a vested remainder subject to divestment in fee simple subject to a condition subsequent (FSSCS)
O holds a right of re-entry/ power of termination in FSA
71
O To A for life, then to B and his heirs if B graduates from law school
A has a life estate
B has a contingent remainder in FSA
O has a reversion in FSA
72
O To A for life, then to B and his heirs, but if A fails to pass the bar exam on the first try, then to C and her heirs.
A has a life estate
B has vested remainder subject to divestment in FSSEI
C has a shifting executory interest in FSA
73
O conveys “to A 15 years from now”
A has a springing executory interest
74
O conveys “to A so long as no alcohol is sold on the property, then to Alcoholics Anonymous”
A has a FSSEI
| Alcoholics Anonymous has a shifting executory interest
