Future Interests 1

Question 1

FSA ESTATE:

LANGUAGE
DURATION
TRANSFERABILITY
FI

Answer 1

lang.: “2A (& his heirs)”
duration: Abs. ownership.
Pot. infinite duration
Transferabil.: Yes. Transf. inter vivos, devisable, descendible.

FI: “Heirs” /O have: Nothing!

Question 2

Fee Tail, FT (Abolished) ESTATE
LANGUAGE	
DURATION	
TRANSFERABILITY	
FI

Answer 2

1) lang.: “2A & heirs of his body”
2) duration: Lasts while G’ee has LINEAL BLOOD desc. ML: Creates FSA !
3) transferabil.: Does NOT AUTOM. pass to G’ee’s lineal descendants.
4) FI: G’or: REVERSION.
3P: REMAINDER
(b/c estate terminates naturally)

Question 3

[To Detlef, AS LONG AS the premises are used for church purposes.]

***FS Determin. (FSD) is an estate that:

Answer 3

AUTOM. TERMIN. (reverts) in favor of G’or upon the happening of a stated EVENT.
2) FSD requires clear DURATIONAL language
{2A as long as /While /Until}
3) FI in G’or: “Possib.” of Reverter
(=PoR =Autom. Reversion)
FI in 3P: EI

Question 4

***FS Subject to a Condition (FSsCS) SUBSEQUENT is created if:

{2A, BUT IF [alcohol is sold on the premises], then G’or has the right of re-ENTRY}

Answer 4

G’or EXPRESSLY RETAINS the power to terminate G’ee’s estate upon a stated EVENT.
=BUT G’ee’s Estate Continues until G’or exercises his PowerofTermin. (=Right of ENTRY for condition broken =FI. Cf. FI in 3P: EI)
by SUING/making REentry.
[=NEVER autom.]
3) Clear CONDITIONAL lang.

Question 5

*FSSubj. 2 Ex. Limitation ends when: +FI:

[2A & his heirs, BUT IF A marries X, then to B.]
vs.
[“2A, IF & when he becomes a lawyer.” A is in high school].

RAP!

Answer 5

an EVENT triggers AUTOM. passing to a 3P !

Transf.:…subj. to condition

FI: EI (See)

Question 6

A Life Estate …:

{2 Vie for life /
/For the life of Otto}

Answer 6

1) autom. reverts at the DEATH of T’ee or AUTRE VIE.
2) transferabil.: Yes. Alienable …if AV /Measuring life alive
3) FI: G’or: Reversion /
3P: VR
[LT is NEVER measured in years.]

Question 7

**Defeasible Fees (FSD, FSsCS, FSsEL) =present possessory estates.
2 rules of Construction +2CA:

GR: U CanNOT convey MORE than U have.

{“Any attempt to alienate Backacre forfeits G’ee’s interest”}

Answer 7

1)*Clear DURAT./CONDIT. LANG.
CA: Words of Desire-Hope-INT  
["to be used4"] (Cts disfavor:)
2) Absol.RESTR. on ALIEN.=VOID
=>STRIKE Cond.=>FSA results
CA1: REAS. time /LIMITED PURP.
CA2: MERE restriction ON USE /G'or's Right of 1st REFUSAL
[/Mere K. restraint [Non-Ass. clause] => b/c NO effect on title. 
CCA: "G'ee's heirs" rights=>RAP]

Question 8

Life Estate: LT RIGHTs & duties vs. REMAINDERMAN:

Answer 8

Ordinary USES & PROFITS. 
CA: LT must 
1) make ORDIN. REPAIRS 
2) pay TAX & MGT INTEREST IFF: 
INCOME /PROFITS from the land.
If NO income, but LT OCCUPIES it: 
pay to the extent of the FRV.
Cf: REMAINDERMAN: 
1) resp. for PRINCIPAL 
2)  & MAJOR repairs.

Question 9

GR: LT canNOT commit WASTE
(=harm FI holder,
[=> even Contingent Remainderman can enjoin the LT from committing waste].
But LT can ALTER Pr if …:

Answer 9

1) it does NOT diminish the FMV & Remainderman doesNOT OBJECT, or
2) CHANGED NEIGHB. CONDITIONS made the Pr RELATIVELY WORTHLESS.
[Cf.: Subst. changes: also terminate an Equit. Servit.]

Question 10

[LT exploits nat. resources.]

Doctrine of Waste: LIST

Answer 10

Voluntary/Affirm. waste
Permiss. waste
Ameliorative waste

Question 11

Voluntary/Affirm. waste +NAT. RESOURCES +CA:

Answer 11

LT’s INT act decreases Pr value.
NAT. RESOURCES:
GR: LT canNOT Exploit
[Timber, Oil, Minerals].
CA: P u R G E: LT may exploit if:
1) PRIOR Use: LT continues existing exploit. /land use (=Open Mines exc.)
CA: Can’t add NEW Mines.
2) Repairs: using for REAS. REPAIRS & MAINT.
3) GRANT: express 2 exploit.
4) Exploitation: Land is SUITABLE ONLY for EXPLOITATION [Quarry].

Question 12

PERMISSIVE Waste

Answer 12

(=Neglect )

DISREPAIR reduces the Pr’s value b/c the LT “negligently” fails to MAINTAIN the Pr

(or Make ordinary REPAIRS).

Question 13

AMELIORATIVE Waste

Answer 13

if LT makes changes w/o the FI holder’s (REMAINDERMAN’s) CONSENT that increase the Pr’s value.

Question 14

• FI created in G’or: LIST

Answer 14

a. Possib. of Reverter
b. Reversion
c. Right of Entry
All 3 G’or interests => No RAP!!

Question 15

Reversion is

Answer 15

the RESIDUE left in a G’or who transfers less than he has.

(AUTOM. arises. Cf: FSsCS
=optional =PoT)
Vested ! => NO RAP issue !

[2A for life=> O has Reversion]

Question 16

FI created in a Transferee [LIST]:

[Note FI are Alienable BEFORE becoming possessory]

Answer 16

1) Remainders (Cf.: G’or=Reversion)
a) VESTED R
b) CONTINGENT R
2) Executory Interest

Cf: FSD /FScCS /LE are NOT ! FI’s

Question 17

**GR: Remainders are Vested or Contingent, and become possessory by 3P:

Answer 17

(if at all) FOLLOWING the NATURAL expiration of a PRIOR estate [=99% LE !!] & NEVER DIVEST s.o.’s interest.
[=Tom Hanks. CA: EI: cuts short EARLY =Arnold]
–RAP applies only to CR !

Question 18

VESTED Remainder is a FI if …:
(+List)

(NO RAP!)

{2 Wes for life, remainder to Assi}

Answer 18

the person taking is 
1) ASCERTAINED [CA: firstborn] 
2) & there's NO COND. PRECEDENT 
to his taking [Else: it's a CR.] 
[ VR LIST: 
1. INDEFEASibly VR 
2. VR subj. 2COMPLETE DEFEASance 
3. VR subj. to OPEN (=VR subj. to PARTIAL Defeasance) ]

Question 19

INDEFEASibly VR

[“To A for life,
remainder to B.”
+A&B are alive].

Answer 19

holder [here B] is CERTAIN TO ACQUIRE an estate in the future
w/ NO CONDITIONS attached.

Question 20

VR subj. to COMPLETE DEFEASance:
[=VR subj. to TOTAL Divestment]

[“2A for life, 
remainder to B, 
but if B dies under age 25, 
then to C.” 
A=alive, B=20 yrs old.]

Answer 20

[Remainderman does NOT take SUBJECT to any condition PRECEDENT, BUT]

the right to possession may be CUT short b/c of a cond. SUBSEQUENT.

Question 21

VR subj. to OPEN. VR in a class requires: +CA:

(=VR subj. 2PARTIAL divestment)

{2Vie for life, then 2 Klaus’s children.”
Vie =alive, Klaus has children Giff & Diver}.

Answer 21

AT LEAST 1 Vested Member
[else =CR !!].
Members’ shares subj. to partial divestment by add’l TAKERS.
GR: Class CLOSES if: ALL members are ID’d [parent dies].
CA: Rule of CONVENIENCE: CLOSES the class when ANY member can DEMAND POSS.
(=> avoids RAP)
CCA: **WOMB Rule: Child in Gestation is incl. IN the class.

Question 22

GR: CONTINGENT Remainder is a possessory FI ...:
[+subj. to the RAP !]. 
{2B for Life, 
remainder to C, 
IF he pays $100}

Answer 22

1) subj. to a COND. PRECEDENT
OR
2) the Holder is UNascertained [UNborn]

Question 23

RAP Rule:

[RAP invalidates the Right of 1st REFUSAL which might not be exercised w/in the period of the rule.]

Answer 23

(contingent) FI is void if there is a remote possibility that it could vest more than 21 years after the death of a measuring life, who was alive when the conveyance was made.

[think: Unborn Widow &
STRIKE violating LANGUAGE
/invalid GIFT from conveyance]

Question 24

**Executory Interest [=Subj. to the RAP!]
[2A & his heirs, BUT IF A marries X, then to B.”]
vs.
[“2A, IF & when he becomes a lawyer.” A is in high school => NOT a FSsCS!!].
[Note: Unlike Remaindermen, the 3P holder of the EI has NO STANDING to sue a LT.]

Answer 24

• *CUTS SHORT a prior POSSESSORY interest upon a contingent event.
  1) SHIFTING EI: shifts title [FSsEL] from the G’ee to a 3P (CUTS SHORT = DIVESTS)
  2) SPRINGING EI: Divests G’or’s estate [or follows a GAP in poss.] ALWAYS DIVESTS another’s interest =NOT naturally follow [Think: Arnold].

Question 25

** 2 Bright-Line RAP Rules +CA:

[If RAP viol.: => Strike the offending interest from the grant
(not only the condition!).
O conveys “to my grandchildren who reach 21” => O has FS, Grandchildren have nothing!]

Answer 25

1) Gifts to OPEN CLASS cond.’d on members’ SURVIVING to an AGE BEYOND 21.
=> “BAD as to 1, BAD as to ALL”
=> ENTIRE Class GIFT void.
2) SHIFTING EI w/o time limit w/in which it must vest.
CA:CHARITY-2-CHARITY gift exception to RAP.

Question 26

RAP **Applies to +CA:
[+4-Steps:]
[RAP Allows property to be tied up for “a life in being plus 21 years” to protect Pr from children’s foolishness]

[Time for determining “lives in being” if conveyance by will /revoc. trust: at Testor’s death.
CF: if conveyance by inter vivos /irrevoc. trust:
at time of conveyance]

Answer 26

1) Applies to: 1) CR 2) EI
3) OPTION K in Deeds.
4) VRsOpen CA:Closed by Rule of Convenience.
CA1:VESTED interests
CA2: G’or’s FI (PoR, PoT, Reversion)
CA3: Opt.K of CURRENT Tenant
[ 2) Find COND. PRECEDENT to vesting.
3) Find the MEASURING LIFE
4) ASK: WILL WE KNOW for sure w/in 21 years of ML’s death, if FI holders can(not) take? ]

Question 27

[
Reform of the RAP.
+CY PRES:

Exam Q specifically asks about STATUTORY REFORMS.
]

Answer 27

[1) “WAIT& SEE”: determines validity at ML’s death.

2) Uniform Statutory RAP (USRAP): Codifies CL RAP w/ ALTERN. 90yr VESTING period.
1) +2) use:
a) CY PRES: if RAP viol., Ct. may REFORM to most closely match G’or’s INT while still complying w/ RAP.
b) OFFENSIVE AGE CONTINGENCY: autom. reduced to 21y (per Stat.)]