Future Interests Flashcards
Which three future interests are capable of creation in the grantor?
Possibility of Reverter
Right of Entry (i.e., Power of Termination)
Reversion
The possibility of reverter accompanies which and only the . . .
Fee Simple Determinable
The Right of Entry (i.e., power of termination) accompanies only the . . .
Fee Simple Subject to Condition Subsequent.
A reversion is the default answer when the property of going back to O unless the estate is a _____ or _____.
Fee Simple Determinable
or
Fee Simple Subject to Condition Subsequent.
Which future interest for O? O conveys: “To A for life.”
Reversion
Which future interest for O? O conveys: “To A for 99 years.”
Reversion
Which future interest for O? O conveys: “To A for life, then to B for 99 years.”
Reversion
If the future interest is held by someone other than the grantor, it has to be either (3):
Vested remainder (indefeasibly vested; vested subject to complete defeasance; vested subject to open)
Contingent remainder
Executory interest (shifting or springing)
What is a remainder?
Future interest created in a grantee that is capable of becoming possessory upon the expiration of a prior possessory estate created in the same conveyance in which the remainder is created.
A remainderman has what three traits? He is . . . (think Jack Johnson)
Sociable, patient, and polite
Remainder men always accompany a preceding estate of ______ _______.
Fixed duration
The preceding estate of a remainder is usually a _____ ____ or a ____ ___ ______
Life Estate
Term of Years
A remainder man is patient and polite. This means that he never follows . . .
A defeasible fee
Remainder men wait for the present estate to end _______.
Naturally
Remainder man can/cannot cut short or divest a prior transferee.
Cannot
If your present estate is a defeasible fee, your future interest is NOT remainder. Instead, it will be an __________________ if held by someone other than the grantee
Executory interest
Remainders are either ___ or ____.
Vested or contingent
A remainder is vested if it is both ____ and ___.
Created in an ascertained person AND
Is not subject to any condition precedent.
A remainder is contingent if it is ______ OR _____.
Created in an unascertained person OR
Is subject to a condition precedent.
Can a contingent remainder be created in an unascertained person?
Yes, has to be.
Can a vested remainder be created in an unascertained person?
No.
To A for life, then to B’s first child.
A is alive. B, as yet, has no children.
Type of remainder?
Contingent
To A for life, then to B’s heirs.” A is alive. B is alive.
Type of remainder? Explain
Contingent. A living person cannot have heirs, so while B is alive his heirs are unknown. Thus, contingent remainder.
Why is the following a contingent remainder?
To A for life, then to those children of B who survive A.
A is alive.
We don’t know yet which, if any, of B’s children will survive A
A condition is a condition precedent when it appears _______ the language creating the remainder OR is _______ into the grant to remainderman.
Before
Woven
Identify the condition precedent:
To A for life, then if B graduates from college, to B.
“If B graduates from college.”
Identify the condition precedent:
To A for life, and if B has reached the age of 21, to B.
A is alive. B is 19.
If B has reached the age of 21.
To A for life, then if B graduates from college, to B.
A is alive. B is in high school. Future Interests?
B has a contingent remainder
O has a reversion
To A for life, then if B graduates from high school, to B.
A is alive. B has graduated high school. Future interests?
B has a indefeasibly vested remainder.
O has a reversion
To A for life, and if B has reached the age of 21, to B.
A is alive. B is 19. Future interests?
B has a contingent remainder.
O has a reversion
To A for life, and if B has reached the age of 21, to B.
A is alive. B is 24. Future interests?
B has an indefeasibly vested remainder.
O has a reversion
The Rule of Destructibility of Contingent Remainders: At common law, a contingent remainder was destroyed if it was . . .
Still contingent at the time the preceding estate ended.
Historically, under the Common Law Rule of Destructibility of Contingent Remainders, if B’s remainder was still contingent at the time A’s estate ended . . .
B’s contingent remainder was destroyed AND A or A’s heirs would take in FSA.
In modern times, the Common Law Rule of Destructibility of Contingent Remainders has been abolished. True or false?
True
To A for life, and if B has reached 21, to B.
A has died. B is only 19. Under modern law, what interest does B have? What happens to the estate?
B has a springing executory interest.
O or O’s heirs hold the estate subject to B’s springing executory interest. Once B turns 21, B takes
Under the Rule in Shelley’s Case, what would happen if O conveys: To A for life, then on A’s death, to A’s heirs.
A is alive.
The present and future interests would merge, giving A a FSA.
Was Shelly’s Case a rule of law or construction? Effect?
Rule of Law
Applies even in the face of contrary grantor intent.
Today, the Rule is Shelly’s Case is still in effect. True or False?
False
Under modern law, what would happen if O conveys: To A for life, then on A’s death, to A’s heirs.
A is alive. Interests?
A has a life estate
A’s yet unknown heirs have a contingent remainder
O has a reversion, since A could die without any heirs.
By what other name is the Doctrine of Worthier Title known?
The Rule Against a Remainder in Grantor’s Heirs
In which situation would the Doctrine of Worthier Title apply?
O, who is alive, tries to create a future interest in his heirs.
O, who is alive, conveys: To A for life, then to O’s heirs.
What result if no Doctrine of Worthier Title?
A has a life estate
O’s heirs have a contingent remainder because O is still alive and a living person has no heirs.
O, who is alive, conveys: To A for life, then to O’s heirs.
What result under Doctrine of Worthier Title?
A has a life estate
O’s contingent remainder is VOID. Instead, O has a reversion.
Is the Doctrine of Worthier Title a rule of law or construction? Effect?
Construction
Grantor’s intent controls.
What are the only types of future interests that can be vested?
Remainders
What is the holder of an Indefeasibly Vested Remainder entitled to?
An estate in the future with NO STRINGS ATTACHED
To A for life, remainder to B. A is alive, so is B.
Interests?
A has a life estate
B has an indefeasibly vested remainder.
To A for life, remainder to B. A is alive. B is dead.
Interests?
A has life estate.
B’s indefeasibly vested remainder would pass by will or intestacy
Under the Vested Remainder Subject to Complete Defeasance, is the remainderman’s taking subject to any condition precedent?
No
Under the Vested Remainder Subject to Complete Defeasance, is the remainderman’s right to possession subject to any condition subsequent?
Yes
Under the Vested Remainder Subject to Complete Defeasance, is the remainderman’s taking subject any “strings attached?” If so, what are they?
Yes, subject to condition subsequent.
What rule can be used to tell the difference between a condition precedent, which creates a contingent remainder, and a condition subsequent, which creates a condition subsequent? Explain
Comma Rule
When condition language in a transfer follows language that, taken alone and set off by commas, would create a vested remainder, the condition is SUBSEQUENT, and you have a vested remainder subject to complete defeasance.
O conveys: To A for life, remainder to B, provided, however, that is B dies under the age of 25, to C.
A is alive. B is 20 years old
Interests?
A has a life estate
B has a vested remainder subject to complete defeasance
C has a shifting executory interest
O has a reversion because it is possible that neither C nor C’s heirs will exist if and when the condition is breached.
O conveys: To A for life, and if B has reached the age of 25, to B.
A is alive. B is 20.
Interests?
A has a life estate
B has a contingent remainder (because his taking is subject to a condition precedent)
O has a reversion (because if B dies under 25, the estate reverts back to O or O’s heirs).
O or O’s heirs hold the Estate subject to B’s springing executory interest
Describe a Vested Remainder Subject to Open.
A remainder is vested in a group of takers, at least one of whom is qualified to take.
BUT, each class member’s share is subject to partial diminution because additional members can still join in.
To a for life, then to B’s children
A is alive. Has has two kids, C and D.
What do C and D have? Why?
Vested remainders subject to open because more kids could come along.
A class is open if . . .
Others can still join
A class is closed if . . .
No others can join.
The CL Rule of Convenience: A class can close whenever any member . . .
Can demand possession.
To a for life, then to B’s children
A is alive. Has has two kids, C and D.
When does the class close? (2)
At B’s death and, according to the CL Rule of Convenience, at A’s death, no matter that B is still alive.
To a for life, then to B’s children
A is alive. B Has has two kids, C and D.
Once A dies, a child born of B or conceived thereafter will not share in the gift. What is the name of the exception? Explain
Exception = The Womb Rule
A child of B takes if he/she is in the womb at A’s death.
To a for life, then to B’s children
A is alive. B Has has two kids, C and D. C has died. Then A dies.
What becomes of C’s interest?
At CL, C’s interest goes to their devisees or heirs.
What is an executory interest?
It is a future interest created in a transferee (third party) which is NOT a remainder AND which takes effect either by cutting short some interest in another person (shifting) or in the grantor or his heirs (springing).
A shifting executory interest always follows a ____________ and cuts short someone other than _________
Defeasible fee
O, the grantor.
To A and her heirs, but if B returns from Canada sometime next year, to B and his heirs.
Interests?
A has a fee simple subject to B’s shifting executory interest.
B has a shifting executory interest. No remainder because remainders NEVER follow defeasible fees.
To A, but if A uses the land for nonresidential purposes at any time in the next 20 years, then to B.
Interests?
A has a fee simple subject to B’s shifting executory interest.
B has a shifting executory interest.
Springing executory interests cut short the _______.
Grantor
O conveys: To A, if and when he marries.
A is unmarried.
Interests?
A has a springing executory interest.
O has a fee simple subject to A’s springing executory interest.
O conveys: To A, if and when he becomes a lawyer.
A is in high school.
Interests?
A has a springing executory interest
O has a fee simple subject to A’s springing executory interest
