Future Interests Flashcards
What does the future interest holder have?
Future right to possession of property
What does the possessory estate holder have the right to?
Current possession of the property.
What is fee simple absolute?
Largest estate because it can last forever.
What are defeasible fee estates?
A fee simple that can be cut short (could go on forever but may be cut short)
- Fee simple determinable
- Fee simple subject to condition subsequent.
What is a fee simple determinable?
A fee simple for a durational period.
- “so long as”
- “while”
- “during which time”
- possibility of reverter is held by the grantor
- reverter happens automatically
What interest does the words “so long as” create?
Fee simple determinable
What interest does the words “while” create?
Fee simple determinable
What interest does the words “during which time” create?
Fee simple determinable.
What is fee simple subject to condition subsequent?
A fee simple estate that is terminated upon the happening of an event or condition.
- created by “but if”
- right of entry must be elected and does not happen automatically
What interest does the phrase “but if” create?
Fee simple subject to condition subsequent.
What is a life estate?
Present possessory estate that ends at the death of the life tenant.
- reversion is held by the future interest holder.
Reversion
- the future interest in a life estate
- held by the grantor
- becomes possessory at the natural termination of the grantee’s life estate.
What are the three potential future interests that can be held by a grantor? And what property interest are they associated with?
1) Possibility of reverter (fee simple determinable)
2) Right of re-entry (fee simple subject to condition subsequent)
3) Reversion (life estate)
What is a remainder?
A future interest capable of becoming possessory at the natural termination of the prior estate.
- held by transferee
What is a vested remainder?
- Remainderman is ascertained and there is not a condition precedent.
Vested as a class gift.
Vested subject to open
- class of people who will take
- at least one member as vested.
- key question is when the class closes.
Contingent Remainder
Condition precedent or unascertained remainder
Executory Interest
An interest held by the grantee that will divest a prior vested interest. Includes a pause in ownership.
Springing Executory Interest
Divests the grantor
Shifting Exeuctory interest
Divests a prior grantee
What is the general class gift rule?
One the death of one of the class members, the gift gets divided amongst the rest of the class
What is the RST 3rd Class Gift Rule?
The share of a deceased class member goes to the class member’s surviving issue.
Future Class Gift - the Common Law
Survival of a child is not essential and the deceased grandchild’s estate can take the interest. It is the opposite treatment under the UPC
Future Class Gift - UPC
future class gifts are contingent on teh beneficiary surviving until the distribution
