Future Interests

Question 1

Remainder Beneficiary of Trust (Remaindermen)

Answer 1

not entitled to receive trust property UNTIL termination of the trust

Question 2

Substituted Takers - a substitute gift is created in the deceased’s beneficiary’s surviving descendants if:

Answer 2

1. the beneficiary of a future interest does NOT survive the distribution date; AND
2. an anti-lapse statute applies (Most states do not apply to trusts)

Question 3

Substituted Takers (UPC) - if a beneficiary of a future interest DOES NOT survive the distribution date, the following applies:

Answer 3

1. NOT a class gift - a substitute gift is created in the surviving descendants
2. single generation class gift (i.e., children) - a substitute gift is created in the surviving descendants of any deceased beneficiary

Question 4

Vested Remainder

Answer 4

an interest where there are no contingencies or conditions on survivorship

1. pass to that person’s heirs if the person dies before the interest becomes possessory
2. are devisable

Question 5

Vested Interests: Conditions on Survivorship

Answer 5

Common law - a condition of survivorship on future interests is NOT implied
UPC - such condition is implied