Estates & Future Interests

Question 1

What language creates Fee Simple Subject to Condition Subsequent?

Answer 1

“To A. But of X happens, grantor reserves the right to reenter and retake.”

Question 2

What language creates Fee Simple Subject to Executory Limitation

Answer 2

“To A, but if X event occurs, then to B.”

Question 3

What ownership rights does a Fee Simple Absolute holder have?

Answer 3

Freely devisable, descendible, and alienable.

Question 4

Historically, who did the fee tail pass to?

Answer 4

Grantee’s lineal blood descendants, no matter what.

Question 5

Today, what interest is created by an attempted fee tail creation?

Answer 5

Fee simple absolute.

Question 6

What are the 3 defeasible fees and their corresponding future interests?

Answer 6

(1) Fee Simple Determinable / Possibility of Reverter
(2) Fee Simple Subject to Condition Subsequent / Right to Reenter
(3) Fee Simple Subject to Executory Limitation / Shifting Executory Interest

Question 7

Can words of mere desire create a defeasible fee?

Answer 7

no

Question 8

What kind of restraints on property alienation are void?

Answer 8

Absolute restraints

Question 9

How is a life estate measured?

Answer 9

In terms of a lifetime (not years)

Question 10

What is the name for a life estate measured by someone other than the grantee?

Answer 10

Life estate pur autre vie

Question 11

What are the two general rules for waste regarding life tenants?

Answer 11

(1) Life tenant entitled to all ordinary uses and profits from the land
(2) Life tenant must not commit waste (i.e., hurt future interest holders)

Question 12

List and define the kinds of waste.

Answer 12

(1) Voluntary or affirmative – overt conduct that causes a drop in value (willful destruction)
(2) Permissive – land allowed to fall into disrepair
(3) Ameliorative – acts that enhance the property’s value

Question 13

When may a life tenant consume natural resources without committing waste?

Answer 13

(1) Prior Use (exploitation before grant)
(2) Repairs and maintenance
(3) Granted the right
(4) Exploitation is all land is suited for

Question 14

What possessory estate does the possibility of reverter accompany?

Answer 14

Fee simple determinable

Question 15

What possessory estate does the right of entry accompany?

Answer 15

Fee simple subject to condition subsequent

Question 16

What possessory estate does the right of reversion accompany?

Answer 16

Any estate that is less than what the transferor started with.

Question 17

What possessory interest does a remainder never follow?

Answer 17

A defeasible fee

Question 18

Can a remainder follow a fee simple determinable?

Answer 18

No. Remainders cannot follow fee simple estates of potentially unlimited duration.

Question 19

When is a remainder vested?

Answer 19

When both:

(1) its holder is ascertained, and
(2) there is no condition precedent

Question 20

What was the common law Rule of Destructibility of Contingent Remainders? What is the rule today?

Answer 20

• Historically, the rule said remainders that were still contingent at the time the preceeding estate ended were destroyed
• Today, the rule says O or O’s heirs hold the property until the contingency is satisfied

Question 21

What was the Rule in Shelley’s Case? What is the modern rule?

Answer 21

• Rule: When granted present and future interests in property, the interests would merge.
• Modern rule: the interests are not merged

Question 22

What is the Doctrine of Worthier title?

Answer 22

It prevents creating future interests in one’s heirs, creating instead a reversion in grantor.

Question 23

What is the significance of the Rule in Shelly’s case being a rule of law, and the Doctrine of Worthier Title being a rule of construction?

Answer 23

Rules of construction can be overcome by grantor’s clear intent, while rules of law cannot.

Question 24

What are the 3 kinds of vested remainders?

Answer 24

(1) indefeasibly vested remainder
(2) vested remainder subject to complete defeasance,
(3) vested remainder subject to open

Question 25

Describe a vested remainder subject to open.

Answer 25

A remainder is vested in a group of takers, at least one of whom can still join.

Question 26

What is the common law rule of convenience for vested remainders subject to open?

Answer 26

The class closes whenever any member can demand possession.

Question 27

What does a shifting executory interest cut short?

Answer 27

A defeasible fee

Question 28

What does a springing executory interest cut short?

Answer 28

A grantor’s fee

Question 29

To which interests does the rule against perpetuities apply?

Answer 29

contingent remainders, executory interests, and some vested remainders subject to open

Question 30

When does a gift to an open class always violate the rule against perpetuities?

Answer 30

When it is conditioned on the members surviving to an age beyond 21.

Question 31

When does a shifting executory interest always violate the rule against perpetuities?

Answer 31

When there is no time limit on it vesting.

Question 32

Is a gift from one charity to another subject to the rule against perpetuities?

Answer 32

no

Question 33

What is the effect of the “wait and see” or “second look” doctrine?

Answer 33

The validity of any suspect future interests is determined at the end of the measuring life, eliminating any “what if” inquiries under the rule against perpetuities.

Question 34

What is the Uniform Statutory Rule against Perpetuities?

Answer 34

Codification of the common law RAP providing for an alternative 90 year vesting period.

Question 35

Under the doctrine of waste, what IS a life tenant entitled to?

Answer 35

all ordinary uses and profits from the land

Question 36

What are the three kinds of waste?

Answer 36

(1) voluntary or affirmative
(2) permissive
(3) ameliorative

Question 37

What are the exceptions for voluntary waste?

Answer 37

(1) Prior Use
(2) Repairs
(3) Grant
(4) Exploitation

Question 38

What is the prior use open mines doctrine?

Answer 38

If mining was done before the life estate began, the life tenant can continue to mine the mines already open, but may not open any new mines.

Question 39

What taxes is a life tenant obligated to pay?

Answer 39

Taxes from income or profits, or the fair rental value, if there is no income or profit.

Question 40

When is a life tenant allowed to tear down a structure without committing waste?

Answer 40

When changed circumstances have rendered the structure uninhabitable