Future Interests Flashcards
Life Estate
“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)
Remainder
A future interest in a third party that will become possessory at some moment in time.
Reverter
The return to the grantor or his/her heirs of real property after all interests in the property given to others have terminated.
Escheat
A person dies intestate with no heirs so the property goes to the state.
Afterborn Heir
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.
Fee Simple Absolute
“to A”
Absolute ownership, freely transferrable, freely divisible, freely alienable
No future interests associated with it
Fee Tail
“to A the heirs of his body”
Abolished in most states. Creates a FSA instead.
Defeasible Fees
an estate that may go on for infinity or may come to an end by the happening of an event in the future
Types of Defeasible Fees
- Fee simple determinable
- Fee simple subject to a condition subsequent
- fee simple subject to an executory limitation
Fee Simple Determinable
“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
Fee Simple Associated Interest
possibility of reverter in grantor
Fee Simple Subject to Condition Subsequent
“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”
Fee Simple Subject to Condition Subsequent Associated Interest
Future interest in grantor: right of entry
Fee Simple Subject to Executory Limitation
“to Raj, but if the land is used as a music studio, to his brother Sanjay “
Fee Simple Subject to Executory Limitation Associated Interests
- shifting executory interest
2. springing executory interest
The Comma Rule
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.
Types of Future Interests Capable of Creation in Grantor
- Possibility of Reverter (accompanies DF)
- Right of Entry (accompanies FSSCS)
- Reversion (accompanies LE or TOY)
Vested Remainder
Future interest created created in ascertained person (grantee) AND not subject to condition precedent
Indefeasibly Vested Remainder
holder of estate gets to acquire estate in future with no strings attached
“to A for life, then to B “
Vested remainder subject to complete defeasance (or subject to total divestment)
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)
Shifting Executory Interest
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.”
Springing Executory Interest
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.”
Vested Remainder Subject to Open
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
Womb Rule
Child in the womb will be deemed as part of the group of takers
