Estates Present Interests

Question 1

What are 3 indicators of life estates?

Answer 1

1. always creates a future interest
2. a reversion if in the transferor
3. a remainder in the transferee

Question 2

Can someone with a life estate give it to another?

Answer 2

yes, but it lasts as long as the original life estate person lives.

Question 3

What is the waste doctrine?

Answer 3

looks at the fair market value of property and actions that decrease the value of the property are more than likely waste.

However, if something improves the value (like destroying an old barn) that is no waste

Question 4

What is a fee simple subject to executory interest?

Answer 4

if the condition stipulates that a third party gets the estate upon violation of the condition, the third party automatically gets the estate.

Question 5

Fee simple (absolute)

Answer 5

1. language = “to A and his heirs”
2. duration = forever
3. future interest in the grantor = none
4. future interest in a 3rd party = none

Question 6

Fee simple determinable

Answer 6

1. language = “to A and his heirs SO LONG AS… “
2. duration = SO LONG AS the condition is fulfilled and if its not met then it AUTOMATICALLY goes back to the grantor
3. future interest in the grantor = possibility of reverter
4. future interest in a 3rd party = executory interest

Question 7

Fee simple subject to condition subsequent

Answer 7

1. language = “to A and his heirs BUT IF… “
2. duration = when the event happens then there is a right of re-entry by the grantor
3. future interest in the grantor = right of re-entry
4. future interest in a 3rd party = executory interest

Question 8

Fee simple subject to executory interest

Answer 8

1. language =
   - “to A and his heirs so long as…. TO B”
   - “to A and his heirs but if… TO B”
2. duration =
   - so long as condition is met, and then to 3rd party
   - until the happening of the event
3. future interest in the grantor = right of re-entry
4. future interest in a 3rd party = executory interest

Question 9

Fee tail

Answer 9

1. language = “to A and the heirs of his body”
2. duration = until A and his lineage die
3. future interest in the grantor = reversion
4. future interest in a 3rd party = none

Question 10

Life estate “To A for life” (may be defeasible)

Answer 10

2. duration = until the end of the measuring life
3. future interest in the grantor = reversion
4. future interest in a 3rd party = none

Question 11

Life estate “To A for the life of B” (may be defeasible)

Answer 11

2. duration = until the end of the measuring life
3. future interest in the grantor = reversion
4. future interest in a 3rd party = none

Question 12

Life estate “To A for life, then to B” (may be defeasible)

Answer 12

2. duration = until the end of the measuring life
3. future interest in the grantor = none
4. future interest in a 3rd party = remainder

Question 13

Life estate “To A for life, but if…. to B” (may be defeasible)

Answer 13

2. duration = until the end of the measuring life or until the event happens
3. future interest in the grantor = reversion
4. future interest in a 3rd party = executory interest

Question 14

What is the order of the hierarchy of estates?

Answer 14

1. fee simple
2. fee tail
3. life estate
4. leasehold estates (tenancies)