Future Interests

Question 1

Heirs

Answer 1

One who is entitled to inherit property

*One has no heirs until you pass away

Question 2

Devise

Answer 2

Give real property by will

Question 3

Conveyance

Answer 3

The legal process of changing property ownership from on person or entity to another

Question 4

Issue

Answer 4

Direct lineage - anything that came from you and on

Question 5

Collateral Heir

Answer 5

Someone not directly related - someone passes away with no parents, children, or spouse. (Think nephews, cousins etc.)

Question 6

Intestate

Answer 6

Died without will

Question 7

Testate

Answer 7

Died with will

Question 8

Fee

Answer 8

Interest in property

Question 9

Reversionary Interest

Answer 9

What goes back to original grantor

Question 10

Fee Tail

Answer 10

“the heirs of his/her body”

Question 11

Alienation

Answer 11

The right to transfer (alienate) it to someone else

Question 12

Restraints on Alienation

Answer 12

Absolute restraints on alienation are void as a matter of law. Partial restraints may be valid under the circumstances (Courts will look to reasonableness)

Question 13

Contingent Until It Vests

Answer 13

When an example is contingent but then it will happen, its vested

Question 14

Vested Subject to Open

Answer 14

Occurs when there is a vested remainder but the terms of the conveyance may allow other vested remainders

Question 15

What type of remainders are subject to RAP?

Answer 15

Contingent remainders

Question 16

What type of remainders are NOT subject to RAP or Doctrines of Destructibility of Contingent Remainders?

Answer 16

Vested remainders subject to complete divestment

*Reversionary interests are not subject to RAP

Question 17

Rule of Destructibility of Contingent Remainders

Answer 17

A legal remainder in land is destroyed if it does not vest at or before the termination of the preceding freehold estate

*Abolished in CA.

Question 18

Doctrine of Merger

Answer 18

Merger occurs when two estates become held by the same person creating a fee simple

O to A for life, then to B. A sells B life estate B and B holds new life estate and remainder in fee simple

Question 19

The Rule in Shelley’s Case

Answer 19

Occurs when in a single instrument/conveyance the grantor grants a life estate in another, and then grants the remainder to that person’s heirs. The rule destroys the interest in the heirs

*Abolished in overwhelming majority of states

Question 20

The Doctrine of Worthier Title

Answer 20

When there is an inter-vivos conveyance of land to a person, and then of remainder in O’s heirs. The remainder simply returns to O as a reversion

Question 21

The Rule Against Perpetuities (RAP)

Answer 21

No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest

Question 22

When does RAP occur?

Answer 22

b. RAP can occur when there is are (1) contingent

Question 23

What are the steps to RAP?

Answer 23

Eliminate RAP by analyzing if there is a future interest, and if so, what that future interest is. If it is not a contingent remainder, an executory interest, or a class gift (vested remainder subject to open), then move on; No RAP issues to contend with

Question 24

What is the measuring life for RAP?

Answer 24

Technically, anybody alive, but ignore that because its confusing and instead focus on someone who is causally connected to the conveyance so the determination is easier

Question 25

What are Class gifts?

Answer 25

If a gift to one member of the class might vest too remotely, the whole class gift is void; or to put in simpler terms, a class gift is not vested in any member of the class until the interests of all members have vested

Class gifts are all in or all out (all members of the class must vest

For a class gift to be vested, the class must be closed (that is, each and every member of the class must be in existence and identified), and all conditions precedent for each and every member of the class must be satisfied, within the perpetuities period

Question 26

What is Wait and See (Alernative #1 to RAP)?

Answer 26

Doctrine adopted by some states that allow for the Court to to look at the remainder at the time of death of the grantor to see if the conveyance violates RAP (or that states version of RAP)

Question 27

What is the Uniform Statutory Rule Against Perpetuities (Alternative #2 to RAP)?

Answer 27

USRAP adopts a fixed waiting period; the permissible waiting period is 90 years

*RAP is common law; if it asks for CA law, CA mixes RAP and Uniform Statutory RAP