Future Interests

Question 1

Interests Retained by the Transferor

Answer 1

1. Reversion
2. Possibility of Reverter
3. Right of Entry (Power of Termination)

Question 2

Reversion

Answer 2

The interest remaining in the grantor, or in the successor in interest of a testator, who transfers a vested estate of a lesser quantum than that of the vested estate which he has. (fee simple greater than a fee tail, which is greater than a life estate, which is greater than the leasehold estates

Question 3

Possibility of Reverter

Answer 3

1. Arises when an owner carves out of his estate a determinable estate of the same quantum.
2. A possibility of reverter is a future interest remaining in the transferor or his heirs when a fee simple determinable is created.

Question 4

Interests Created in a Transferee

Answer 4

1. Remainder

2. Executory Interest

Question 5

Remainder - Definition

Answer 5

A remainder is a future interest that waits politely until the termination of the preceding possessory estate, at which time the remainder moves into possession if it is then vested.
A remainder is a future interest that is capable of becoming possessory at the termination of the prior estate.

Question 6

Remainder - Vested

Answer 6

A remainder is vested if it is created in an ascertained person and is ready to become possessory whenever and however all preceding estates expire (not subject to a condition precedent)

Question 7

Remainder - Indefeasibly Vested

Answer 7

The remainder is certain of becoming possessory in the future and cannot be divested.

Question 8

Remainder - Vested Subject to Complete Defeasance

Answer 8

Because it’s subject to a condition subsequent

Question 9

Remainder - Vested Subject to Partial Defeasance (Subject to Open)

Answer 9

Class gift.

Question 10

Remainder - Contingent

Answer 10

A remainder is contingent if:

1. it is given to an unascertained person or
2. it is made contingent upon some event occurring other than the natural termination of the preceding estates.

Question 11

Executory Interest - General Definition

Answer 11

A future interest in a transferee that must, in order to become possessory, divest another party.

Question 12

Shifting Executory Interest

Answer 12

Divests or cuts short some interest in another transferee

Question 13

Springing Executory Interest

Answer 13

Divests the transferor in the future