Future Interests

Question 1

Vested Remainders

Answer 1

1. Future interest given to someone ascertained (named);

2. Interest “not subject to a condition precedent”– grantee doesn’t have to do anything before interest vests.

Question 2

Vested Subject to Complete Divestment

Answer 2

1. Indicates that the occurrence of a condition subsequent will completely divest the grantee of his remainder interest.
   ex: To be for life then to C, but if C has no children, then to D.

C= vested remainder subject to complete divestment.

Question 3

Contingent Remainders

Answer 3

1. Future interest given to an ascertained person (named), but her interest is subject to a “condition precedent”; OR
2. Future interest is given to a person who isn’t ascertained (not born yet)

Question 4

Vested Remainder Subject to Open

Answer 4

1. Occurs where there’s a class gift + full membership is unknown. Ex: A’s kids over age 21.
2. If all class members have vested (after A dies), then class is closed.
3. As members join, the earlier vested persons are partially divested.

Question 5

Rule of Convenience

Answer 5

AVOIDS RAP

1. In absence of closing date on class gift, this rule closes class when any member becomes entitled to immediate possession of property.

Ex: A conveys to B for life, and then to C’s children. If conveyance doesn’t specify when class closes, then the class closes when B dies, regardless of whether any of C’s children are born after B’s death.

Question 6

Doctrine of Worthier Title

Answer 6

1. Grantor retains reversionary interest rather than giving a future interest to his heirs.

Ex: A conveys to B for life, and then to A’s heirs.

2. Effect: prevents grantor’s heirs from receiving a remainder interest in deeds written in this way.

Question 7

Shelley’s Case

Answer 7

1. If life estate gives future interest to life tenant’s heirs, then the grantor is presumed to have given the grantee a fee simple absolute rather than a life estate.

Ex: A conveys to B for life, and then to B’s heirs.

2. Effect: prevents contingent remainders in grantee’s heirs.

Question 8

Springing Executory Interest

Answer 8

Grantee holds interest that divests grantor, contingent upon the occurrence of a specific condition.

Ex: A conveys blackacre to B if B graduates from law school.

B= springing executory interest in blackacre

Question 9

Shifting Executory Interest

Answer 9

Grantor gives an interest to a second party, but if conditions are triggered, then the second party is divested and property transfers to a third party.

A conveys blackacre to B, but if C graduates from law school, then to C.

c= shifting executory interest in blackacre