Future Interests Flashcards
Heirs
One who is entitled to inherit property
*One has no heirs until you pass away
Devise
Give real property by will
Conveyance
The legal process of changing property ownership from on person or entity to another
Issue
Direct lineage - anything that came from you and on
Collateral Heir
Someone not directly related - someone passes away with no parents, children, or spouse. (Think nephews, cousins etc.)
Intestate
Died without will
Testate
Died with will
Fee
Interest in property
Reversionary Interest
What goes back to original grantor
Fee Tail
“the heirs of his/her body”
Alienation
The right to transfer (alienate) it to someone else
Restraints on Alienation
Absolute restraints on alienation are void as a matter of law. Partial restraints may be valid under the circumstances (Courts will look to reasonableness)
Contingent Until It Vests
When an example is contingent but then it will happen, its vested
Vested Subject to Open
Occurs when there is a vested remainder but the terms of the conveyance may allow other vested remainders
What type of remainders are subject to RAP?
Contingent remainders
What type of remainders are NOT subject to RAP or Doctrines of Destructibility of Contingent Remainders?
Vested remainders subject to complete divestment
*Reversionary interests are not subject to RAP
Rule of Destructibility of Contingent Remainders
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.
Doctrine of Merger
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
The Rule in Shelley’s Case
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
The Doctrine of Worthier Title
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
The Rule Against Perpetuities (RAP)
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
When does RAP occur?
b. RAP can occur when there is are (1) contingent
What are the steps to RAP?
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
What is the measuring life for RAP?
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
What are Class gifts?
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
What is Wait and See (Alernative #1 to RAP)?
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)
What is the Uniform Statutory Rule Against Perpetuities (Alternative #2 to RAP)?
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
