Future interests

Question 1

reversion

Answer 1

estate left in grantor who conveys less than they own other than possibility of reverter

transferable, descendible, devisable

Question 2

possibility of reverter

Answer 2

when estate automatically reverts to grantor upon stated event.

Transferable, descendible and devisable

Question 3

Right of Entry

Answer 3

following fee simple subject to condition subsequent

event must occur AND grantor exercise his right to reentry

descendible and devisable, some courts hold not transferable inter vivos

Question 4

remainders

Answer 4

future interest held by someone other than grantor.

expressly created

can’t divest a prior estate (patient remainderman)

contingent remainder, 
vested remainder (indefeasibly vested remainder, vested remainder subject to complete defeasance)

Question 5

Contingent remainder

Answer 5

remainder contingent if:

1. created in unborn or unascertained persons or
2. subject to a condition precedent: the language appears before the language creating the remainder or woven into it

Question 6

vested remainder

Answer 6

created in an existing and ascertained person and not subject to a condition precedent

Types:

1. indefeasibly vested remainder
2. vested remainder subject to total divestment
3. vested remainder subject to open

Question 7

vested remainder subject to total divestment / subject to complete defeasance

Answer 7

vested remainder subject to a condition subsequent

Question 8

vested remainder subject to open

Answer 8

vested remainder in a group of person, at least one of whom is qualified to take possession but shares can get smaller as more people are added to the class.

Ex: to A for life then to B’s children

Question 9

class gifts

Answer 9

can be vested subject to open (at least one class member exists) or contingent (none currently exist)

Question 10

The rule of convenience

Answer 10

A class closes when some member of the class can call for distribution

Ie when the class vests or if impossible to add more to the class

Ex: To A for life, then to B’s children (B has 2 kids). Class would close on A or B’s death

exception: the womb rule: persons in the womb at the time the class closes are part of the class

Question 11

executory interests

Answer 11

future interests in 3rd parties that cut short an interest in another person or the grantor

Question 12

Shifting executory interest

Answer 12

always follows a defeasible fee and cuts short someone other than grantor

Ex: To A, but if B returns from Canada, to B and his heirs. B has shifting executory interest and A has a fee simple subject to B’s shifting executory interest

Question 13

Springing executory interest

Answer 13

cuts short the interest of the grantor

Ex: to A, if and when she becomes a lawyer