Future Interests Flashcards
Reversion —
a future interest in land which comes into being upon the happening of a stated event in a fee simple determinable.
Must a reversion be expressly reserved?
No
Does the RAP apply to reversions?
No, because all reversions are deemed as vested.
Remainder —
a future interest in a third person that can become possessory on the natural expiration of the preceding estate.
Must a remainder be expressly reserved?
Yes.
Remainders only apply to what kind of present estates?
Life estates.
What are the four types of remainders?
Indefeasibly vested remainder; vested remainder subject to open; vested remainder subject to total divestment; contingent remainder.
Indefeasibly Vested Remainder —
a remainder created in an existing and ascertained person and not subject to a condition precedent. The remainderman has a right to immediate possession of the property upon the termination of the preceding estate.
Vested Remainder Subject to Open —
a vested remainder created in a class of persons that is certain to become possessory but is subject to diminution; i.e. addition of additional persons.
Vested Remainder Subject to Total Divestment —
a vested remainder that is subject to a condition subsequent.
Contingent Remainder —
a remainder created in an unborn OR unascertained person or subject to a condition precedent.
Executory Interests —
future interests in third parties that either divest a transferee’s preceding feehold estate or follow a gap in possession or cut short a grantor’s estate.
Shifting Executory Interest —
a future interest in a third party which divests a transferee’s preceding freehold estate.
Springing Executory Interest —
a future interest in a third party which follows a gap in possession or cuts short a grantor’s estate.
Can you transfer a vested remainder?
Yes. Vested remainders are transferable, descendible, and devisable.
