Future Interests Flashcards
The six Future Interests are:
1) The Possibility of Reverter; 2) The Right of Entry(Power of Termination); 3) The Reversion; 4) A Vested Remainder; 5) A Contingent Remainder; 6) An Executory Interest
The Possibility of Reverter accompanies
The Fee Simple Determinable
The Right of Entry accompanies
The Fee Simple Subject to Condition Subsequent.
The Reversion exists
whenever the grantor conveys less than their entire interest (over time). E.G. “To A for life, then to B for 99 years.” Grantor still has an interest after all is said and done.
A remainder is vested if it is
BOTH created in an ascertained person and is not subject to any condition precedent.
A remainder is contingent if it is
created in an un-ascertained person OR is subject to a condition precedent, or both.
The Rule of Destructibility of Contingent Remainders holds
A contingent remainder is destroyed if it is still contingent at the time the preceding estate ended. Has fallen out of fashion. Now, the contingent remainder is put of hold until it vests, rather than simply destroyed.
The doctrine of Worthier Title applies
when O, who is alive, tries to create a future interest in his heirs while also transferring to a third party for a limited duration.
A class is open if
others may still enter “the class”
A class is closed when
no others can enter
The class closes, pursuant to the common law rule of convenience, whenever
any member can demand possession.
An executory interest is
a future interest created in a transferee, which is not a remainder and which takes effect either by cutting short some interest in another person (shifting) or in the grantor or his heirs (springing).
