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Real Property > Future Interests > Flashcards

Future Interests Flashcards

1
Q

What is a future interest?

A

An ownership interest in presently existing property which may commence in possession or enjoyment sometime in the future

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2
Q

What are the 5 types of future interests?

A
  1. Reversion
  2. Possibility of reverter
  3. Right of reentry
  4. Remainder
  5. Executory interests
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3
Q

What is a reversion?

A

a FI held by a grantor who transfers a LE or estate for years w/out conveying the remianing FI to a thrid party

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4
Q

Is a reversion subject to RAP?

A

NO

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5
Q

Is a reversion alienable, devisable, and descendible?

A

Yes

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6
Q

What is a possibility of reverter

A

A FI retained by a grantor when a FSD is conveyed

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7
Q

Is a possibility of reverter alienable, devisable, and descendible?

A

Yes

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8
Q

What is a right of reentry?

A

a FI retained by a grantor afer a FSSCS is granted

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9
Q

Is a right of entry alienable?

A

CL - no inter vivos transfer

Some states - permitted

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10
Q

Is a right of entry devisable and descendible?

A

Yes, in most states

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11
Q

What is a remainder

A

A FI that becomes possessory upon the natural expiration of a prior estate that is created in the same conveyance in which the remainder is created

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12
Q

What is a vested remainder

A

one that is not subject to any conditions precedent

there is an ascertainable grantee

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13
Q

?????What is a vested remainder subject to open? (class gifts)

A

If at least one class member is qualified to take possession at the time of the conveyance, each class member’s share is subject to partial diminution b/c additional takers not yet ascertained can still vest

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14
Q

What is a class gift?

A

a group of unspecified persons whose number, identity, and share of the interest is determined in the future

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15
Q

What happens when a class (part of a class gift) closes?

A

Any person who might otherwise have become a class member cannot claim an interest in the property as a class member

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16
Q

Rule of convenience

A

closes the class when any class member is entitled to immediate possession

17
Q

What is a vested remainder subject to complete divestment?

A

when the occurrence of a condition subsequent will divest the remainder

18
Q

What is a contingent remainder?

A

remainder created in

  1. an ascertainable grantee OR
  2. is subject to an express condition precedent to grantee’s taking (ex. unknown beneficiary OR known beneficiary subject to condition precedent that has not yet occurred)
19
Q

What is a survivorship contingency?

A

Majority Rule: applies at the termination of interest that precedes remainder

Minority: requires surviving the testator, NOT surviving the life tenant

20
Q

What are executory interests?

A

A FI in a third party that cuts the prior estate short upon the occurence of a specified condtion

21
Q

Are EI subject to RAP?

A

Yes

22
Q

Are EI transferable?

A

Yes, (alienable?)

23
Q

What is a shifting EI?

A

it cuts short a prior estate created in the same conveyance - the estate shifts from one grantee to another grantee upon the happening of a condition

24
Q

What is a springing EI?

A

it divests the grantor’s interest or fills a gap in possession in which the estate reverts to the grantor

25
Q

Are EI devisable and deescendible?

A

Yes

26
Q

Is a remainder transferable?

A

Yes, inter vivos

27
Q

Is a remainder devisable/descendible?

A

Yes

28
Q

Is a remainder subject to RAP?

A

Some are

  1. contingent remainders
  2. vested remainders subject to open
29
Q

What is the Rule Against Perpetuities (RAP)

A

specific FIs are valid ONLY IF they must vest or fail by the end of a life in being plus 21 years

30
Q

RAP applies to which FIs?

A
  1. contingent remainders
  2. vested remainders subject to open
  3. executory interest
  4. powers of appointment
  5. rights of first refusal
  6. options
31
Q

Which FIs does RAP NOT apply to?

A

In general, FIs that revert to the grantor

  1. reversion
  2. possibility of reverter
  3. right of reentry
32
Q

Can there be more than one measuring life for RAP?

A

Yes, but must be human life

33
Q

What if there is no measuring life specified?

A

The measuring life is the life directly related to the FI that is subject to RAP

34
Q

How to test whether it will vest or fail

A

If there is ANY possibility that it will NOT be known whether the interest will vest or fail w/in the applicable period, then RAP has NOT been satisfied

**think of a story, someone having a child then dying

35
Q

What happens when RAP is violated

A

only the offending interest fails, except in rare cases when voiding the FI undermines the grantor’s intent

36
Q

What is the special rule for class gifts/RAP

A

“bad as to one, bad as to all”

If RAP voids a transfer to ANY class member, then the transfers void as to ALL class members, even those whose interests have already vested

37
Q

How does the rule off convenience affect RAP

A

CAN prevent the application of RAP to a class transfer, but the application of the RoF to a class transfer does NOT AUTOMATICALLY forestall the application of RAP

38
Q

???? Exceptions

A

transfers of a specific dollar amount to each class member

transfer to a subclass that vests at a specific time

39
Q

What are common RAP violations?

A
  1. survival beyond age 21 condition
  2. fertile octogenaraian
  3. unborn spouse
  4. defeasible fee followed by executory interest
  5. conditional passage of an interest

Real Property (17 decks)

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