Estates Future Interests

Question 1

What are 3 indicators of reversion under future interests of a transferor?

Answer 1

1. transferor gives less than what he has
2. “O conveys land to A for life & on A’s death to B in fee simple if B survives A” - thus O retains a remainder because if B dies, then it reverts to O
3. all are vested interests because both the owner and the event upon which it will become possessory are certain

Question 2

What are 3 indicators of the possibility of reverter under future interests of a transferor?

Answer 2

1. when a party transfers a determinable estate of some quality
2. “as long as”
3. fee simple absolute person gives fee simple determinable to another party

Question 3

What are 2 indicators of the right or reentry under future interests of a transferor?

Answer 3

1. transfer lesser estate subject to condition subsequent

2. “but if”

Question 4

what is a vested remainder under future interests of transferees?

Answer 4

not subject to any condition precedent other than the natural termination of the preceding estate

Question 5

what are 3 indicators to remainder under future interest of transferees?

Answer 5

1. vested
2. given to ascertained person, which is named but can be dead and must be born
3. can be transferable, divisible, and descendible

Question 6

What is an indefeasibly vested remainder?

Answer 6

in the future, can’t be divided

Question 7

What are 4 indicators of an indefeasibly vested remainder?

Answer 7

1. can be created in and held only by ascertained persons
2. must be certain to become possessory on termination of the prior estate
3. must be subject to being defeated or divested
4. must not be subject to being diminished in size

Question 8

What is partial divestment?

Answer 8

later born kids, class gift subject to RAP

Question 9

What is total divestment?

Answer 9

arrives when the remainder man is in existence and ascertained and he is not subject to any condition precedent but his right to possession and enjoyment is subject to being divested if at his death issue does not survive him

Question 10

What are 4 indicators of contingent future interests in transferees?

Answer 10

1. a state event must occur before possession
2. condition precedent
3. it is to an unascertained person, not conceived
4. it is to an unborn person

Question 11

Are contingent future interests in transferees subject to RAP?

Answer 11

yes

Question 12

What is a condition precedent?

Answer 12

an event that must occur or fail before an interest can become vested (remainder) or possessor (executory interest)

Question 13

What happens when a condition precedent fails?

Answer 13

it reverts to the grantor

Question 14

What are 3 indicators of executory interests?

Answer 14

1. future interest in a transferee that in order to become possessory must divest a vest estate subject to RAP
2. shifting any interest that divests a previously vested estate, if previously vested estate in an interest in a transferee
3. springing divests the grantor, amount of time goes back tot the grantor

Question 15

Is a trust subject to RAP?

Answer 15

no