Future Interests Flashcards
What is the The Possibility of Reverter?
Only found in the Fee Simple Determinable (FSDOR) – EG – As long as she remains a lawyer (if condition is triggered than the property is reverted to the owner (O)) - Reverts back to the owner
What is The Right of Reentry (AKA the Power of Termination)?
Only accompanies Fee Simple Subject to Condition Subsequent – EG – To A but if coffee is consumed grantor reserves the right (prerogative) to reenter, or look the other way
What is a Reversion? - The catchall for the grantor, and default answer
Arises in a grantor who transfers an estate of lesser quantum than she started with, other than a fee simple determinable or fee simple subject to condition subsequent - Example: Owner transfers to A for Life, this is less than owner started with and so when the life of A is over reversion to owner takes place
What are the 3 type of vested remainders?
- The indefeasibly vested remainder
- The vested remainder subject to complete defeasance
- The vested remainder subject to open
What is the indefeasibly vested remainder?
The holder is certain to acquire with no strings attached
What is the vested remainder subject to complete defeasance?
The remainder is vested in a group of takers at least one of whom is to take, but each class member’s share is subject to partial diminution because additional members can still join
i. Class is open if others can still join
ii. Class is closed if others cannot still join, and any one member can claim
iii. Common Law of Convenience – Class closes whenever any member can demand possession
1. E.g. “To A for life, then to B’s children.” A is alive. B has two children, C and D, once A dies C & D may demand possession and therefore the class closes, however while A is still alive the class is open
2. EXCEPTION – The Womb Rule: If B has child in the womb, in addition to C & D at the time of A’s death that child will be a part of the class
What is a contingent remainder?
Created in an unascertained person or is subject to condition precedent or both
What is an example of an unascertained person in a contingent remainder?
Unborn children = “unascertained persons”
i. E.g. To A for life than to B’s first child, A is still alive and B still has no children
What is language that appears before the language creating the remainder in a condition precedent?
“To A for life, then, if B graduates from college, to B.” A is alive. B is now in high school. Before B can take, he must graduate from college. He has not yet satisfied this condition precedent.
- B has a contingent remainder
- O has reversion (once A dies and if B does not graduate from college, this also means that if O is dead his heirs will take)
- If B graduates from college during A’s lifetime than B has an indefeasibly vested remainder
What is the Rule in Shelley’s Case?
In one case: “To A for life, then, on A’s death, to A’s heirs.” A is alive.
i. Basically if A is alive than A’s heirs have a contingent remainder, because their status will be determined at A’s death
What is the The Doctrine of Worthier Title?
The rule of against a remainder in grantors heirs: The rule is viable in most states today: O who is alive conveys to A for life than to O’s heirs
i. If the doctrine of worthier title did not apply than A would have a life estate and O’s heirs would have a contingent remainder (because O is still alive and a person that is still alive does not have any “heirs”)
ii. The Doctrine of Worthier Title basically says that: A now has a life estate and O has a reversion
iii. Seeks to promote a more liberal transfer of land
iv. Grantor’s (O’s) intent controls
What kind of remainder is the following, “To A for life, then, if B graduates from college, to B.” A is alive. B is now in high school. Before B can take, he must graduate from college. He has not yet satisfied this condition precedent.
i. So here this is a condition precedent, the condition precedes the fee in the clause
ii. Now if B graduates college before A dies, he no longer has a contingent remainder (he has fulfilled the contingency) so now he has an indefeasibly vested remainder
What are the 2 types of executory interests?
- The shifting executory interest
2. The springing executory interest
What is the shifting executory interest?
i. Follows a defeasible fee, and;
ii. Cuts short someone other than the grantor
iii. E.g. “To A and her heirs, but if B returns from Canada sometime next year, to B and his heirs.” – This looks like a fee simple, however there is a catch and so it is a defeasible fee and now, and therefore is a shifting executor – If B takes that is not the “natural end” of the estate
What is the springing executory interest?
i. Cuts short “O” the grantor
1. “To A, if and when he marries.” A is unmarried.
a. A has = A springing executory interest, if A gets married A divests O
b. O has = Has a fee simple subject to A’s springing executory interest
