Future Interests

Question 1

Vested remainder

Answer 1

A remainder is vested if:

1) it is conveyed to an ascertainable person, and

2) it is not subject to a condition precedent, other than the natural termination of the preceding estate

Question 2

Contingent remainder

Answer 2

A remainder is contingent if:

1) it is given to an unascertainable person, or

2) it is subject to a condition precedent

Question 3

Condition precedent

Answer 3

A condition precedent is an express condition that must be fulfilled for the remainder to vest

Question 4

Can a remainder follow a vested fee simple?

Answer 4

NEVER

Any interest created in a third party following a vested fee simple will be an executory interest

A remainder can only follow an estate of a lesser quantum than a fee simple, e.g., life estate or term of years

Question 5

Remainder

Answer 5

A remainder is a future interest held by a transferee which

(1) is capable of becoming possessory immediately upon the expiration of the prior estate, and

(2) cannot divest any interest in a prior transferee

• alienable, devisable, descendible
• cannot follow a vested fee simple
• either vested or contingent

Question 6

Divest

Answer 6

To “cut short” or terminate an estate before its natural termination

E.g., a life estate is divested if it ends before the death of the measuring life

Question 7

Alienable

Answer 7

Capable of being transferred

Question 8

Descendible

Answer 8

Capable of being transferred pursuant to the laws of intestate succession

Question 9

Devisable

Answer 9

Capable of being transferred by will

Question 10

Condition precedent

Answer 10

A condition that must be met before a future interest will vest