Future Interests Flashcards
Generally
Gives its holder the right or possibility of an estate. Despite the fact that its in the future, it is a present, legally protected interest.
Future Interests in Grantor Types
Possibility of reverter
Right of entry/power of termination
Reversion
Possibility of reverter
For grantor
Accopmanies fee simple determinable
Right of entry/power of termination
For O.
Accompanies fee simple subject to condition subsequent
Reversion
For O.
Accompnaies when grantor conveys estate of LESSER DURATION (other than reverter/right of entry)
Example: Life estate; to A for 99 years; to A for life then to B for 99 years
Future Interests in Third Parties types
1) Contingent Remaineder
2) Vested Remainder (3 types)
3) An executory interest (2 types)
Remainders
Future interest in T.
Possession on NATRUAL expiration of preceding estate (usually life estate or term of years).
Vested or contingent.
NOTE: if there’s a gap, not a remainder
—-example: To a for life, then to B one day after A’s death.
Contingent Remainder
Future interest in T.
A remainder is contingent if:
1) its created in unborn or unascertained persons OR
2) its subject to a condition precedent (must be satisfied before the remainderman has a right to possession)
OR BOTH.
A remainder may be contingent as to PERSON or as to EVENT.
Unborn/unascertained EXAMPLES:
1) A to life, then to B’s first child
2) A to life, then to B’s heirs (B’s heirs are unknown)
3) A to life, then to those children of B who survive A. (we don’t know who will be alive)
Condition precedent exapmles:
1) To A for life, then to B and his heirs IF B marries C
2) A for life, then to B and his heirs IF B marries C, otherwise to D and his heirs
—–alternative contigent remainders
Common Law Doctrines on Remainders
NOTE: These doctrines have been abolished and are likely the wrong answer. Just studying so you know it’s a wrong answer.
1) Destructibility of contingent remainders
2) Rule in Shelley’s case
3) Doctrine of worthier title
Vested Remainders (and types)
A remainder created in an EXISTING AND ASCERTAINED person, and NOT subject to a condition precedent.
Three types:
1) Indefeassibly vested remainder
2) Vested remainder subjct to total divestment
3) Vested remainder subject to open
Indefeasibly vested remainder
Certain to acquire estate in teh future. No strings attatched, no conditions.
“To A for life, remainder to B”
Vested Remainder SUbject to Total divestment
A vested remainder SUBJECT to a CONDITION SUBSEQUENT (NOT PRECEDENT).
Effectivley, right to possession could be cut short because of a condition subsequent.
“A to life, then to B and his heis, but if B dies unmarried, then to C and his heirs.”
Conditions subsequent vs precedent
Precedent: Appears before language introducing you to remainderman
Subsequent: Apepars AFTER language that, alone and set off by commas, creates remainder
Vested Remainder Subject to Open
Vested remainder created in a class of persons (ex. children) that is CERTAIN to become possessory, BUT is subject to diminution. (such as by the birth of additional persons in the class).
SO there’s at least one ascertaiend person, but some potential unascertained people.
Vested Remainder SUbject to Open - When the class closes
ie when no more people can join class.
Apply RULE OF CONVENIENCE: in the absence of express contrary intent, a class closes WHEN SOME MEMBER OF THE CLASS CAN CALL FOR DISTRIBUTION OF THEIR SHARE of the class gift. IE someone demands CAN demand possesion.
EXCEPTION: The womb rule. Persons in gestation are included in class.
