Future Interests Flashcards
Define: reversion
A reversion is formed when a transferor conveys away a lesser estate than he has. Ie. Hasn’t given away all the sticks in the bundle.
Define: future interest
An estate that does not presently entitle its owner to possession, but will or nah in the future become a present interest.
Note: a future interest is not a mere expectancy, it gives legal rights to its owner that are vested in the future
Define: possibility of Reverter
A future interest left in grantor who conveys an FSD
Define: right of entry
A future interest left in a grantor who conveys an FSCS and expressly raises a right to reenter themselves
Define: vested remainder
Is capable of becoming a present possessory interest upon the natural termination of the preceding estates created in the same disposition. Cannot be subject to a condition
Define: contingent remainder
Subject to a condition precedent or one created in favor of unborn or unacertained persons.
Define: executory interests
Future interest created in a transferee which is not a remainder and which takes effect by either CUTTING SHORT some interest in another person (shifting executory interest) or CUTS OFF THE INTEREST IN TE GRANTOR. (Springing executory interest).
Define: springing executory interest
Cuts short the grantors right.
Define: shifting executory interest
Cuts short the interest of a third party.
The Destructibility Doctrine
A remainder in land is destroyed if it does not vest at or before the termination of the preceding freehold estate.
Example: “O conveys Blackacre to A for life, then to B and her heirs of B reaches 21.”
If at A’s death, B is under 21, B’s remainder is destroyed and O now has sole right of possession
The Doctrine of Merger
If the life estate and the next vested interest in FSA combine into the hands f one person, the lessor estate is merged into the larger
Example: “to A for life, remainder to B and her heirs.” Then A conveys her life estate to B.
The life estate A gave B merged into B’s FSA. So b just has an FSA, no life estate.
The doctrine of worthier title
Common-Law only!! To avoid taxes
O> A for life then to As heirs.
The Doctrine of Equitable Division
Idea that land should be given as closely to the donors intent as possible.
The twilight phone ideA, where we could call them up and ask what they intended.
Rule in Shellys case:
Common Law only to avoid taxes!!
O> A for life then to O’s heirs
Vested remainder subject to divestment
Remainders taking is not subject to any condition precedent, however his right to condition could be cut short because of a condition subsequent.
