Future Interests

Question 1

Fee Simple Absolute

Answer 1

owns 100% for all time

Question 2

Life Estate

Answer 2

a. Owns 100% for life, FI = Remainder (contingent – vested)
b. Contingent = may get it if a contingency occurs “then to C if…”
c. Vested = going to get it for sure
d. A to B for B’s life. At B’s death  goes back to A. A has a reversion
e. A to B then to C. C has a remainder

Question 3

Fee Simple Determinable

Answer 3

a. “so long as.”

b. FI = Possibility of Reverter. Interest automatically reverts back

c. “A to B so long as used for …” if stopped using for that, goes back to A. therefore, A has a “possibility of Reverter.”

d. Reverter is automatic.

Question 4

Fee Simple Subject to Condition Subsequent

Answer 4

• “but if” = Right of Re-Entry – not automatic.
• If this event occurs in the future  have a right of re-entry

Question 5

Rule Against Perpetuity

Answer 5

If either Determinable or Subject to Condition Subsequent, and there is a subsequent grantee, then RAP applies and that conveyance is void.
- A to B, for life, then to C.
- If A to B is fee simple determinable or subject to condition subsequent, then the “then to C” conveyance would be void.
- A & B’s interests remain valid