Future Interests

Question 1

Life Estate

Answer 1

“to A for life”
A present possessory interest that lasts for the individual’s life.
Doesn’t specify a term of years.
Associated future interests: Reversion (in grantor), Remainder (in 3rd party)

Question 2

Remainder

Answer 2

A future interest in a third party that will become possessory at some moment in time.

Question 3

Reverter

Answer 3

The return to the grantor or his/her heirs of real property after all interests in the property given to others have terminated.

Question 4

Escheat

Answer 4

A person dies intestate with no heirs so the property goes to the state.

Question 5

Afterborn Heir

Answer 5

Heirs of the decedent conceived before his or her death, but born thereafter, inherit intestate property as if they had been born in the decedent’s lifetime.

Question 6

Fee Simple Absolute

Answer 6

“to A”
Absolute ownership, freely transferrable, freely divisible, freely alienable
No future interests associated with it

Question 7

Fee Tail

Answer 7

“to A the heirs of his body”

Abolished in most states. Creates a FSA instead.

Question 8

Defeasible Fees

Answer 8

an estate that may go on for infinity or may come to an end by the happening of an event in the future

Question 9

Types of Defeasible Fees

Answer 9

1. Fee simple determinable
2. Fee simple subject to a condition subsequent
3. fee simple subject to an executory limitation

Question 10

Fee Simple Determinable

Answer 10

“to A until he gets out of the nuclear power plant” or “to A so long as she has blue hair”

• Durational language
• Violation of condition is automatic forfeiture
• Divisible, alienable, and descendible

Question 11

Fee Simple Associated Interest

Answer 11

possibility of reverter in grantor

Question 12

Fee Simple Subject to Condition Subsequent

Answer 12

“Charlie conveys to Lucky but if Lucy drops out of school then Charlie has the right to re-enter and re-take the property”
a fee simple that does not automatically end, but may be cut short or divested at the grantor’s wish if stated condition occurs
- Grantor must convey in terms of “right to re-enter”

Question 13

Fee Simple Subject to Condition Subsequent Associated Interest

Answer 13

Future interest in grantor: right of entry

Question 14

Fee Simple Subject to Executory Limitation

Answer 14

“to Raj, but if the land is used as a music studio, to his brother Sanjay “

Question 15

Fee Simple Subject to Executory Limitation Associated Interests

Answer 15

1. shifting executory interest

2. springing executory interest

Question 16

The Comma Rule

Answer 16

When conditional language in a transfer follows language that taken alone and set off by commas would create a vested remainder in the first place, then that condition has to be a condition subsequent, and therefore what you get is a vested remainder subject to complete defeasance.

Question 17

Types of Future Interests Capable of Creation in Grantor

Answer 17

1. Possibility of Reverter (accompanies DF)
2. Right of Entry (accompanies FSSCS)
3. Reversion (accompanies LE or TOY)

Question 18

Vested Remainder

Answer 18

Future interest created created in ascertained person (grantee) AND not subject to condition precedent

Question 19

Indefeasibly Vested Remainder

Answer 19

holder of estate gets to acquire estate in future with no strings attached
“to A for life, then to B “

Question 20

Vested remainder subject to complete defeasance (or subject to total divestment)

Answer 20

remainder is not subject to any condition precedent, but the remainder’s right to possession could be cut short by a condition subsequent (shifting/springing executory interests)

Question 21

Shifting Executory Interest

Answer 21

Cuts short the interstate in another person. Goes from one grantee to another upon the occurrence of some condition.
“Otto conveys to Raj for life, remainder to Willie, provided that if Willie dies under 40 to Sammy.”

Question 22

Springing Executory Interest

Answer 22

By cutting short the grantor. Goes from the grantor to a grantee upon the occurrence of some condition
“O conveys to A if and when A gets married.”

Question 23

Vested Remainder Subject to Open

Answer 23

remainder vested in a class or group of takers at least one of whom is qualified to take possession

• subject to partial diminution because additional takers not yet ascertained can still qualify as class members
• class is open until set time when persons born thereafter are shut out
• class closes whenever a member demands possession

Question 24

Womb Rule

Answer 24

Child in the womb will be deemed as part of the group of takers

Question 25

Contingent Remainder

Answer 25

a remainder that is created in an unascertained person OR is subject to a condition precedent

Question 26

Rule of Destructibility (common law)

Answer 26

Contingent remainder was destroyed if it was still contingent at the time the preceding estate ended.
*Not the law today

Question 27

Rule in Shelly’s Case

Answer 27

common law rule that if in a single grant a freehold estate is given to a person and a remainder is given to the person’s heirs, the remainder belongs to the named person and not the heirs, so that the person is held to have a fee simple absolute
*Not the law today

Question 28

Doctrine of Worthier Title

Answer 28

“O conveys to A for life then to O’s heirs.” This doctrine makes the “to O’s heirs” void and gives O a reversion. This rule exists for purposes of certainty as well as because we want to make the estate alienable
*Not the law today

Question 29

Executory Interest

Answer 29

a future interest created in a transferee/third party that is not a remainder and takes effect by either springing or shifting

Question 30

What future interests are subject to RAP?

Answer 30

contingent remainders, executory interests, and vested remainders subject to open

Question 31

RAP Analysis

Answer 31

1. Determine which future interests have been created by your conveyance
2. Ask, what has to happen before a future interest holder can take?
3. Identify the measuring lives
4. Will we know for certain, at the time the instrument becomes effective, whether or not within 21 years of the death of at least 1 of our measuring life/s the future interest will vest?

Question 32

Measuring Lives

Answer 32

Whoever is alive at the date of conveyance and/or is mentioned or pre-supposed by the instrument

Question 33

Cross-Out Rule

Answer 33

Where left with a conveyance that is not grammatically correct after the RAP cross out is made, present estate holder gets a fee simple absolute.