Future Interests

Question 1

Future Interests created in O

Answer 1

• Reversion (often follows life estates, contingent remainders, or missing steps in possession)
• Possibility of Reverter “POR” (always associated with FSD)
• Right of Entry (always follows FSSCS)

Question 2

Created in Grantee

Answer 2

(1) Vested Remainder
(2) Contingent Remainders
(3) Executory Interests

Question 3

Vested Remainders

Answer 3

• (1) Given to an ascertained person and (2) no condition precedent before it becomes possessory.
• Indefeasibly Vested Remainder: will not be divested. O to A for life.
• VR Subject to Divestment: VR that could be divested before it becomes possessory; if divested will be by an executory interest. O to A for life, then to B and his heirs, but if B does not survive A, then to C at A’s death.
• VR Subject to Open: (Class Gift) may be partially divested. O to A for life, then to A’s children. A has 1 child.

Question 4

Contingent Remainder

Answer 4

• (1) Given to an unascertained person; or (2) condition precedent before it becomes possessory.
• (Cond. Precedent): O to A for life, then to B if B swallows 21 goldfish.
• (Unascertained Person): O to A for life, then to the winner of the 2016 Olympics.

Question 5

Executory Interests

Answer 5

• Divest vested remainders.
• (Springing): Divests O. O to A for life, then one year later to B.
• (Shifting): will divest anyone other than O. O to A for life, then to B, but if B dies younger than 21, immediately to C.

Question 6

Rule Against Perpetuities

Answer 6

-For a future interest to be valid, it must vest within 21 years of a measuring/validating life.
-Only applies to contingent remainders, executory interests, and class gifts.
-Policy: we don’t want to take land from people, but we also don’t want people tying up land indefinitely either.
EXCEPTION: Charitable Gifts because we want people to give to charity