Future Interests Flashcards
Future interests - generally
A future interest gives its holder the right or possibility of future possession of an estate. Despite the fact that possession is in the future, a future interest is a present legally protected right in the property.
Future interests in transferor - reversionary interests : list
POD, ROE, and Reversion
Reversions
A reversion is the estate left in a grantor who conveys less than they own. Whenever our grantor transfers an estate of lesser duration than what they started with, other than instances giving rise to a possibility reverter or right of entry, the future interest that arises is a reversion. The reversion arises by operation of law, it does not have to be expressly reserved. A reversion is transferable, devisable by Will and inheritable. Its holder can sue for waste and tortious damage to the reversionary interest.
Examples of a lesser estate include a life estate or a leasehold. 
Future interests in transferees - list
If a future interest is held by someone other than the grantor, it has to be either:
A contingent remainder
A vested remainder, which there are three types
And executory interest, of which there are two types 
Future interests in transferees - remainders - generally
A remainder is a future interest in a third person that can become possessory on the natural expiration of the proceeding estate. It cannot diverse a prior estate, and it cannot follow a time gap after the proceeding estate. A remainder must be expressly created in the instrument, creating the proceeding possessory estate. Remainders are either vested or contingent.
Future interests in transferees - remainders - contingent remainder
A remainder is contingent if:
It’s created in unborn or unascertained persons
Or
It’s subject to a condition proceed
Or both
Future interests in transferees - remainders - contingent remainder - unborn or unascertained persons
A remainder created an unborn or an unascertained persons is contingent because until the remainderman is ascertained, no one is ready to take possession if the proceeding estate ends. 
Future interests in transferees - remainders - contingent remainder - subject to condition precedent
A condition is precedent if it must be satisfied before the remaindermen has the right to possession. Look for a condition to appear before the language, creating the remainder or for it to be woven into the grand to the remaindermen. It is a prerequisite to the remaindermen admission, meaning something that they must do in order to succeed in taking possession.
Future interests in transferees - remainders - contingent remainder - technical rules of the common law
There are a few technical rules under the common law that address specific situations involving remainders. They have been abolished in most jurisdictions, so even if it is an answer choice, it is never the right answer. These include destructibility of contingent remainders, rule in Shelly‘s case, and the doctrine of worthier title
Future interests in transferees - remainders - vested remainders - generally
Vested remainder is one created in an existing and ascertained person, and not subject to condition precedent.
The three types are: the indefeasibly vested, remainder, the vested remainder subject to total divestment, and vested remainder subject to open
Future interests in transferees - remainders - vested remainders - IVR
And IVR is a vested remainder that is not subject to divestment or dimmunition. The holder of this remainder is certain to acquire in a state in the future, with no strings or conditions attached.
Future interests in transferees - remainders - vested remainders - VRSTD
This is a vested remainder that is subject to a condition subsequent. It is also known as a vested remainder subject to complete defeasance. Here the remaindermen exists. His taking is not subject to any condition precedent. However, his right to possession could be cut short because of a condition subsequent. 
Future interests in transferees - remainders - vested remainders - VRSTD - distinguishing conditions
It is important to know the difference between a condition precedent, which creates a contingent remainder, and a condition subsequent, which creates a vested remainder subject to total divestment.
When conditional language is a transfer follows language that, taken alone and set off by commas, would create a vested remainder, the condition is a condition subsequent and you have a vested remainder subject to complete defeasance. 
Where the language is ambiguous, the preferences for vested remainder subject to divestment rather than contingent remainders or executory interest. 
Future interests in transferees - remainders - vested remainders - VRSO
This is a vested remainder created in a class of persons like children, that is certain to become possessory, but it’s subject to diminution. For example, by the birth of additional persons who will share in the remainder as a class. 
Class gifts - generally
A class is a group of persons having a common characteristic, like children or nephews. The share of each member is determined by the number of persons in the class. A class gift of a remainder may be vested, subject to open, where at least one group member exist or contingent where all group members are unascertained
Class gifts - when the class closes
A class is open when it’s still possible for others to join in. A class closes when no others can join in. To figure out whether a given class has closed, we apply the rule of convenience.
Under the rule of convenience, in the absence of express, contrary, intent, a class closes meaning no one born after that time may share in the gift, when some member of the class can call for distribution of their share of the class gift. So, a class closes when any member of the class can demand possession .
Class gifts - survival
Survival of a class member to the time of closing is usually unnecessary to share in the future gift, unless survival was made an express condition. However, certain terms are construed to create implied survivorship conditions. For example, widows, issue, heirs, next of kin. Note that under some anti-lapse statutes, a gift will be saved for the parties descendants, even if there’s an express survival contingency. 
Future interests in transferees - executory interests - generally
Executory interests are future interests in third parties that either divest a transfer is proceeding freehold estate or follow a gap in possession or cut short a grantor’s estate.
While both remainders and executory interests are created and transfer, you can distinguish executory interest by remembering that they must take affect by cutting short, some interest, either in another person or in the grantor or the grantor’s heirs. 
Future interests in transferees - executory interests - shifting
A shifting executory interest always follows a defeasible fee and cut short someone other than a grantor
Future interests in transferees - executory interests - springing
A springing executory interest cut short the interest of the grantor 
Transferability of remainders and executory interests
Basset. Remainders are fully transferable, descendible by intestacy, and divisible by will. At Common law, contingent, remainders, and executory interest were not transferable, inter vivos, but most courts today hold that they are freely transferable. Contingent remainders, and executory interest are descendible and divisible, provided survival is not a condition of the interest taking.any future interest that is transferable is subject to involuntary transfer, meaning it is reachable by creditors.
