Future Interests

Question 1

Executory Interests

Answer 1

An interest held by a third party that divests the person holding a property interest, usually a possessory fee simple or a vested remainder, on the happening of a specified event.

Question 2

Condition Subsequent

Answer 2

A condition that will stop the person with a future interest from taking possession or enjoying the property.

Question 3

Condition Precedent

Answer 3

A condition that must be met for the person with the future interest to take possession or enjoyment.

Question 4

Vested Remainder

Answer 4

A remainder interest given to a presently ascertained person and not subject to a condition precedent.

Question 5

USRAP

Answer 5

The Uniform Statutory Rule Against Perpetuities - enacted in majority of states, that uses 90 years as a measuring period for a trust interest. `

Question 6

Contingent Remainder

Answer 6

A remainder interest either not given to a presently ascertained person or that is subject to a condition precedent.

Question 7

Springing Executory Interest

Answer 7

An interest that divests the transferor.

Question 8

Possibility of Reverter

Answer 8

A reversionary interest that follows a fee simple determinable.

Question 9

Shifting Executory Interest

Answer 9

An interest that moves property from one transferee to another.

Question 10

Power of Termination / Right of Entry

Answer 10

Reversionary interest that follows a fee simple subject to a condition subsequent.

Question 11

The Rule in Shelley’s Case

Answer 11

Rule of law which states that if a grantor conveys land to a grantee for life, which a remainder in the grantee’s heirs, then the language creates a fee simple absolute in the grantee, and the remainder in the heirs merges with the life estate.

Question 12

RAP

Answer 12

Rule developed in common law to minimize a person’s control over property after the person’s death and keep property marketable. A majority of states have adopted statutory variations on the common law rule.

Question 13

A __________ is an interest in property that is not presently possessory.

Answer 13

Future Interest.

Question 14

The holder of a __________ does not have the right to current possession or enjoyment of the property, although she has rights with respect to the property.

Answer 14

Future Interest.

Question 15

A ___________ is created by law when the transferor does not give away all the interests she had in the property she transferred.

Answer 15

Reversion

Question 16

A possibility of reverter follows a ________

Answer 16

Fee Simple Determinable

Question 17

A remainder is vested if it is given to a presently ascertained person and is not subject to a _________.

Answer 17

Condition Precedent

Question 18

A remainder is a __________ if it is not given to a presently ascertained person or it is subject to a condition precedent.

Answer 18

Contingent Remainder

Question 19

An ___________ is an interest held by a third party that divests the person holding a property interest, usually a possessory fee simple or a vested remainder, on the happening of a specific event.

Answer 19

Executory Interest.