Future Interests

Question 1

Grantor: Possibility of Reverter

Answer 1

A possibility of reverter is granted concurrent with a fee simple determinable, and must be expressly reserved by the grantor. This means that the property will automatically revert back to the grantor upon the stated condition.

Question 2

Grantor: Right of Entry

Answer 2

A right of entry is granted concurrent with a FSSCS and gives the grantor the permission to re-enter and terminate the estate if the stated condition occurs. The estate does not automatically revert, but rather the grantor must re-enter the land and re-take possession.

Question 3

Grantor: Reversion

Answer 3

A reversion exists with a life estate where the grantor leaves himself with some interest in the land.

Question 4

3rd party: Remainder

Answer 4

A remainder is a future interest granted to a 3rd party that follows naturally and immediately at the expiration of all previous estates. A remainder waits its term and cannot cut short an estate and must be explicitly granted at conveyance.

Question 5

Indefeasible vested remainder

Answer 5

A vested remainder is a remainder created in a known person and not subject to a condition precedent or divestment. All vested remainders are fully transferable during life.

Question 6

Vested remainder subject to open

Answer 6

A VRSTO is a remainder that is usually granted to a class of people that is certain to become possessory, but is uncertain as to the amount of class members that will share in the interest. The class closes whenever any member of the class is entitled to a distribution.

Question 7

Vested Remainder subject to complete defeasance

Answer 7

A VRSCD is a vested remainder that is subject to condition subsequent, and may, upon the stated condition, fully exclude the 3rd party of all interest in the property.

Question 8

Contingent Remainders

Answer 8

A contingent remainder is a remainder that is subject to a condition precedent. And will only become possessory upon the happening of that stated event.

Question 9

Destructibility

Answer 9

The rule of destructibility states that if a contingent remainder fails to vest before the preceding estate expires, it is terminated. However, most states have abolished this rule and simply convert the contingent remainder into a springing executory interest.

Question 10

Doctrine of Worthier Title

Answer 10

The doctrine of worthier title states that a remainder in the grantor’s heirs becomes a reversion in the grantor.

Question 11

Rule of Shelley’s Case

Answer 11

The rule of Shelley’s case states that if the same instrument created a life estate in A, and a remainder interest in A’s heirs, the remainder is not recognized and A is awarded a fee simple absolute.

Question 12

Executory Interest

Answer 12

An executory interest is one that will cut short the interest in another person (shifting) or the interest of the grantor (springing) upon the occurrence of the stated event

Question 13

Rule against perpetuities

Answer 13

The RAP states that an interest must vet, if at all, within 21 years after the death of a measuring life. RAP only applies to contingent remainders, executory interest, and vested remainders subject to partial divestment.

Question 14

Fertile octogernarian

Answer 14

There is a presumption that a person is fertile no matter her or her age

Question 15

Unborn Widow

Answer 15

A person’s widow is not determined until death, so a disposition ti the issue of the widow violates the RAP

Question 16

Class Gifts

Answer 16

If an interest of any class member may vest too remotely, the whole class gift fails

Question 17

Charities

Answer 17

A gift from one charity to another does not violate the RAP