FUTURE INTERESTS

Question 1

PoR

Answer 1

• FSD
• automatic
• transferable/ devisable/ descenbible

Question 2

RoE

Answer 2

• FSSCS
• not automatic
• Grantor must expressly reserve right
• Grantor must take action
• NOT transferable inter vivos
• Devisable
• Descendible

Question 3

Remainder

Answer 3

• interest to 3P
• becomes possessory on natural expiration of preceding estate
• must be expressly created in instrument

Cannot:

• divest a prior estate
• cannot follow a gap (if it does, person has an executory interest, not remainder)

Question 4

Types of Remainder

Answer 4

1. Indefeasibly Vested Remainder (IVR)
2. Vested Remainder Subject to Open (VRSO)
3. Vested Remainder Subject to Total Divestment (VRSTD)
4. Contingent Remainder (CR)

• • VR are transferable/descendible/ devisable
• *CR & EI are descendible/ devisable

Question 5

Indefeasibly Vested Remainder (IVR)

Answer 5

• created in existing & ascertained person
• not subject to condition precedent
• right to immediate possesion upon normal termination of preceding estate

Question 6

Vested Remainder Subject to Open (VRSO)

Answer 6

• created in class of person, certain to become possessory

- subject to diminution (birth of another who will share in the remainder of class)

Question 7

Vested Remainder Subject to Total Divestment (VRSTD)

Answer 7

• suject to condition subsequent

- if languange ambiguous, its a VRSD (rather than CR/EI)

Question 8

Contingent Remainder (CR)

Answer 8

• created in unborn/unascertained persons; OR

- subject to a condition precedent

Question 9

Rule of Convinience

Answer 9

in the absense of express contrary intent, a class closes when SOME member of the class can call for the distribution.