Future Interests Basics Flashcards
What future interest remains after O conveys a fee simple absolute?
None
If the future interest following a life estate is in the grantor, what is it called?
Reversion
If the future interest following a fee simple determinable is in the grantor, what is it called?
Possibility of Reverter
If the future interest following a fee simple subject to a condition subsequent is in the grantor, what is it called?
Right of entry
If the future interest following a life estate determinable is in the grantor, what is it called?
Reversion. (The LE grants the reversion. Even though “determinable” grants a POR, because the reversion to the life estate is the larger future interest, we keep the term “reversion.”)
If the future interest following a term of years is in the grantor, what is it called?
Reversion
If the future interest following a term of years subject to a condition subsequent is in the grantor, what is it called?
Reversion. (Even though “subject to a condition subsequent” also grants a ROE, because the reversion to is the larger future interest, we keep the term “reversion.”)
What is the name of the grantor’s future interest that “waits patiently” for the prior estate to “end naturally”?
Reversion
What is the name of the grantor’s future interest that can interrupt the prior estate, causing it to end early?
Right of entry
A grantor can have three future interests: a reversion, a possibility of reverter, and a right of entry. Which two operate automatically, without any action by the grantor?
Reversion and possibility of reverter
If the future interest following a life estate is in the grantee, what is it called?
Remainder
If the future interest following a term of years is in the grantee, what is it called?
Remainder
What is the name of the grantee’s future interest that “waits patiently” for the prior estate to “end naturally”?
Remainder
How can you recognize a contingent remainder?
Its holder is unascertained or it contains a condition precedent or both.
What two characteristics define a vested remainder?
Its holder is ascertained AND it has no condition precedent.
What two characteristics define an ascertained person?
The person is born and identified.
What is a condition precedent?
A condition that (a) is set out within the description of a particular estate and (b) must be satisfied before that estate can become possessory.
What are “alternative contingent remainders”?
Contingent remainders are “alternative” when they each follow the same estate and when their conditions precedent are the opposite of each other, so that the vesting of one precludes the vesting of the other.
Is a reversion deemed vested or contingent?
Vested
Is a right of entry deemed vested or contingent?
Vested
Is a possibility of reverter deemed vested or contingent?
Vested
To whom does a reversion belong?
The grantor
To whom does a remainder belong?
The grantee
Distinguish between a remainder and a reversion.
A remainder is a future interest created when a grantor conveys an inherently limited possessory estate and, in the same conveyance, conveys the future interest to a second grantee.
A reversion is a future interest created when a grantor conveys an inherently limited possessory estate and retains the future interest.
If the future interest following a fee simple determinable is in a second grantee, what is it called?
Executory interest
What do we call the future interest following a fee simple subject to an executory interest?
Executory interest
What do we call a second grantee’s future interest when it follows a conveyance like “to A and her heirs until B retires from the Army”?
Executory interest
To whom does an executory interest belong?
A grantee
What distinguishes an executory interest from a right of entry or a possibility of reverted?
An executory interest is a future interest held by a grantee, while a right of entry or possibility of reverted is a future interest retained by the grantor.
What are the common words of temporal limitation that signal a determinable estate followed by an executory interest?
until, while, during, so long as
What are the common words of express condition that signal an estate subject to an executory interest?
but if, however, on condition that, provided that
Does an executory interest take effect automatically upon the happening of the condition?
Yes
What do we call a second grantee’s future interest that follows a life estate determinable?
Remainder
Of the future interests following an estate with an added limitation, which is the only one that does NOT operation automatically upon the happening of the condition?
Right of entry
What does it mean to say that a vested remainder is subject to divestment?
A vested remainder is subject to divestment if the divesting condition could happen before the remainder becomes possessory. **check with Prof. Cai
What does it mean to say that a remainder is “subject to open”?
A remainder is “subject to open” if it is given to a class that could expand.
What does it mean to say that a remainder given to a class is “closed”?
A remainder given to a class is “closed” if no additional members can be added to the class.
Which kind of executory interest divests the grantor?
springing executory interest
Which kind of executory interest follows a grantee?
shifting executory interest
