Future Estates Flashcards
Types of Vested Remainders
Remainder created in an existing and ascertained person, and is not subject to a condition precedent (could still have a cond subsequent though)
Types:
1) Indefeasibly Vested Remainder
2) Vested Remained Subject to Total Divestment
3) Vested Remainder Subject to Open
what is a indefeasibily vested remainder
A remainder is a future interest that an existing and ascertained person holds, and is not (or no longer) subject to a condition precedent
an indefeasibily vested remainder means they are certain to take, no strings attached
what is a vested remainder subject to total divestment
3rd party is ascertained but they are subject to a condition subsequent
Ex. “to A for life, then to B, but if B dies unmarried, then to C” i.e., B must get married if they are going to take
what is a vested remainder subject to open
Vested remainder created in a class of persons (e.g., “children”) that is certain to become possessory but is subject to diminution (i.e., depends on how many children end up being in the class)
Contingent Remainder
A remainder (3rd Party’s future interest) is contingent if:
1) created in unborn or unascertained persons
2) is subject to a condition precedent (person is ascertained but unmet condition precedent needs to be met before they can, if ever, take)
Class Gifts
A “class” is a group of persons having a common characteristic (e.g., “children”)
May be vested subject to open (where at least one group member exists) or contingent (all group members are ascertained)
Rule of Convenience (Class Gifts)
Class is still open when others could join, closed when no one else can
Rule of convenience says that a class can be closed when any one of it’s members can exercise their right to possession (to B for B’s lifetime then to C’s children; B dies, class closes with however many kids C has at the time of B’s death)
