Future Estates Flashcards
Vested Remainder
(1) given to ascertained person AND
(2) no “condition precedent” (before it becomes possessory) other than natural termination of prior estate
life estates have vested remainders
Indefeasibly Vested Remainder
O to A for life, then to B
certain of becoming possessory -> not divested before actual possession
Remainder Vested Subject to Divestment
O to A for life, then to B, but if B doesn’t survive A, then to C at A’s death.
vested remainder that can become DIVESTED BEFORE possession
always will have Executive Interest (EI)
Remainder vested subject to open
O to A for life, then to A’s children. A has kid B.
when remainder can be split up but not divested
Contingent Remainder
not given to ascertained person AND/OR
there is a “condition precedent”
** reversion back to O **
Executory Interest (EI)
receive if property is already vested & person waiting for conditions
Springing -> divest from O
Shifting -> dives from anyone else
Rule Against Perpetuities
only on:
(1) Contingent Remainders
(2) Executory Interests
(3) Remainders Vested Subject to Open
RAP Period
Duration of all lives at time of grant + 21 years
(1) What will make the interest vest?
(2) Could that happen outside of the perpetuities period?
Class Gifts
O to A for life, then to B’s Children. B has B1 & B2.
Class closes when B dies
Rule of Convenience (Class Gifts)
class closes when any member of the class claims possession
For Class Gifts to vest in RAP
(1) Class has to be closed; AND
(2) all conditions precedent have to be satisfied for every member of the class for the perpetuities period
