Future Interests

Question 1

What future interest comes with a fee simple determinable?

Answer 1

Possibility of reverter - happens automatically

Question 2

What future interest comes with a fee simple subject to condition subsequent?

Answer 2

Right of re-entry - grantor must assert that right

Question 3

What future interest comes with a life estate?

Answer 3

Reversion - happens automatically

Question 4

When does a class gift vest?

Answer 4

When there is at least one ascertainable member of the class, class closes when no more class members can be made

Question 5

When is a remainder contingent?

Answer 5

1. Taker is unascertained

2. Remainder is subject to condition precedent

Question 6

What happens when a class member dies?

Answer 6

That member’s share is automatically redivided among surviving class members

Question 7

What happens when a class member dies according to the 3d restatement?

Answer 7

Goes to the dead class member’s surviving issue

Question 8

What happens if an income beneficiary disclaims its interest?

Answer 8

Trust principal becomes immediately distributable (accelerates) to the remainder beneficiaries of the trust if the remainder is vested

Question 9

What happens if an future beneficiary disclaims its interest?

Answer 9

The disclaimant is deemed to have predeceased the life tenant

Question 10

What happens if a gift lapses (ie: beneficiary dies before the testator)?

Answer 10

1. Most states - it reverts back to estate and nothing goes to dead beneficiaries’ issue
2. UPC - goes to the dead beneficiaries’ issue