Future Interests Flashcards
What future interests can be created in transferees?
Vested remainder
Contingent remainder
Executory interest
What future interests are capable of creation in a grantor?
Reversion
Possibility of Reverter
Right of Entry/Power of Termination
What is a remainder?
A future interest created in a grantee that could become a possessory interest when the prior possessory interest ends.
What does it mean to say a remainderman is sociable?
If there is a remainder, it always accompanies a possessory interest of a known, fixed duration (often a life estate).
What does it mean to say a remainderman is patient and polite?
A remainder never follows a defeasible fee - so it cannot cut short or divest the interest from a prior transferee.
What type of interest accompanies a defeasible fee?
an executory interest
What are the requirements for a remainder to be vested?
(1) created in an ascertained, known person (i.e. someone alive or the heir exists)
(2) is not subject to any condition precedent
What are the two characteristics that can make a remainder contingent?
Either it is created in an unascertained person (unborn or heir apparent) or is subject to a condition precedent, or both.
What is a future interest in a transferee subject to a condition precedent called in New York?
A Remainder Subject to a Condition Precedent.
What is a condition precedent?
a prerequisite.
it appears before the language creating the remainder, or is woven into the grant to remainderman.
What happens in the case of a contingent remainder when the remainderman satisfies the condition?
The remainder becomes an indefeasibly vested remainder
When the remainder is a conditional one, what future interests are there?
O has a reversion until the condition is met, when the remainderman attains an indefeasible vested remainder.
What is the rule of destructibility of contingent remainders?
If the preceding estate ends BEFORE THE CONDITION for the remainderman is met, the remainder is destroyed.
BUT THIS HAS BEEN ABOLISHED.
What happens today when a preceding estate ends before the condition on a remainderman is met?
The property reverts to O, and B has a springing executory interest.
What is a springing executory interest?
To A for life, then to B if B graduates from law school.
A dies before B graduates.
The property reverts to O or O’s heirs, and B has a springing executory interest: the property automatically transfers to B when he graduates from law school (i.e. satisfies the condition)
Facts: “To A for life, then to B if he marries.”
A dies before B is married.
What does B have?
A springing executory interest.
The property reverts to O or O’s heirs, and if B ever marries, the property will automatically transfer to him.
What is the Rule in Shelly’s Case?
“To A for life, on A’s death, to A’s heirs.” A is alive. The present and future interests MERGE and A has a fee simple absolute.
What is the status of the Rule in Shelly’s Case today?
Abolished.
What is the doctrine of worthier title?
“O to A for life, then to O’s heirs.”
The contingent remainder in O’s heirs is void.
A gets a life estate, and O has a reversion.
What happens if the Doctrine of Worthier Title is waived?
O’s attempt to create a contingent remainder in his heirs is enforceable. It can be waived by clear statement.
“To A for life, remainder to B” A is alive and B is alive. What does B have?
An indefeasibly vested remainder.
What does it mean to have an indefeasibly vested remainder?
the holder will certainly acquire the estate in the future, with no strings attached.
What does New York call a vested remainder subject to complete defeasance?
a remainder vested subject to complete defeasance
What does it mean to have a vested remainder subject to complete defeasance/subject to total divestment?
The remainderman’s right to the estate could be cut off or cut short by a condition subsequent.
