Future Interests

Question 1

Future Interests are either… (2)

Answer 1

Vested or Contingent

Question 2

What does Vested mean?

Answer 2

The future interest will become possessory at some point

Question 3

What does Contingent mean?

Answer 3

The future interest may or may not ever be possessory

Question 4

What are the 2 categories of Future Interests created in a 3rd party?

Answer 4

1. Remainders (waits paitiently and cannot cut short the earlier estate)
2. Executory Interests (

Question 5

What are the 4 types of Remainders?

Answer 5

1. Indefeasibly Vested Remainder
2. Vested Remainder Subject to Complete Divestment (aka Vested Remainder Subject to Divestment)
3. Vested Remainder Subject to Open
4. Contingent Remainder

Question 6

What are the 2 types of Executory Interests?

Answer 6

Springing Executory Interest

Shifting Executory Interest

Question 7

What is Vested Remainder Subject to Divestment?

Answer 7

A vested remainder, but it is subject to a condition subsequent. Look for But If

Question 8

What is Vested Remainder Subject to Open?

Answer 8

Baby makers! Where the class of people may increase in size and at least one member of the class has already satisfied the requirement

Question 9

What is Rule of Convenience?

Answer 9

Once one member of the class is entitled to take actual possession of the property, then the class closes

Question 10

What is a Contingent Remainder?

Answer 10

If a remainder isn’t vested, it is contingent. Created in favor of an unborn child/ unidentified person OR created with an express condition precedent

Question 11

What is an Alternative Contingent Remainder?

Answer 11

2 contingent remainder, with the 2nd expressly contingent on the 1st failing to vest

Question 12

What is Destructibility of Contingent Remainders?

Answer 12

A contingent remainder must vest prior to, or at the moment, the preceding finite estate ends, or the contingent remainder is destroyed by operation of law

Question 13

What are the 3 ways that are a Premature End to Finite Estates?

Answer 13

1. Forfeiture
2. Renunciation
3. Merger

Question 14

What is Forfeiture?

Answer 14

At CL, if a life tenant commits certain crimes, the punishment could include forfeiture, which terminates the Life Estate interest

Question 15

What is Renunciation?

Answer 15

A life tenant can voluntarily renounce her interest in the Life Estate at any time

Question 16

What is Merger?

Answer 16

If the same party holds successive vested interest, the interests should be merged, and re-identified as the largest estate created by the merger