Future Interests Basics

Question 1

What future interest remains after O conveys a fee simple absolute?

Answer 1

None

Question 2

If the future interest following a life estate is in the grantor, what is it called?

Answer 2

Reversion

Question 3

If the future interest following a fee simple determinable is in the grantor, what is it called?

Answer 3

Possibility of Reverter

Question 4

If the future interest following a fee simple subject to a condition subsequent is in the grantor, what is it called?

Answer 4

Right of entry

Question 5

If the future interest following a life estate determinable is in the grantor, what is it called?

Answer 5

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.”)

Question 6

If the future interest following a term of years is in the grantor, what is it called?

Answer 6

Reversion

Question 7

If the future interest following a term of years subject to a condition subsequent is in the grantor, what is it called?

Answer 7

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.”)

Question 8

What is the name of the grantor’s future interest that “waits patiently” for the prior estate to “end naturally”?

Answer 8

Reversion

Question 9

What is the name of the grantor’s future interest that can interrupt the prior estate, causing it to end early?

Answer 9

Right of entry

Question 10

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?

Answer 10

Reversion and possibility of reverter

Question 11

If the future interest following a life estate is in the grantee, what is it called?

Answer 11

Remainder

Question 12

If the future interest following a term of years is in the grantee, what is it called?

Answer 12

Remainder

Question 13

What is the name of the grantee’s future interest that “waits patiently” for the prior estate to “end naturally”?

Answer 13

Remainder

Question 14

How can you recognize a contingent remainder?

Answer 14

Its holder is unascertained or it contains a condition precedent or both.

Question 15

What two characteristics define a vested remainder?

Answer 15

Its holder is ascertained AND it has no condition precedent.

Question 16

What two characteristics define an ascertained person?

Answer 16

The person is born and identified.

Question 17

What is a condition precedent?

Answer 17

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.

Question 18

What are “alternative contingent remainders”?

Answer 18

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.

Question 19

Is a reversion deemed vested or contingent?

Answer 19

Vested

Question 20

Is a right of entry deemed vested or contingent?

Answer 20

Vested

Question 21

Is a possibility of reverter deemed vested or contingent?

Answer 21

Vested

Question 22

To whom does a reversion belong?

Answer 22

The grantor

Question 23

To whom does a remainder belong?

Answer 23

The grantee

Question 24

Distinguish between a remainder and a reversion.

Answer 24

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.

Question 25

If the future interest following a fee simple determinable is in a second grantee, what is it called?

Answer 25

Executory interest

Question 26

What do we call the future interest following a fee simple subject to an executory interest?

Answer 26

Executory interest

Question 27

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"?

Answer 27

Executory interest

Question 28

To whom does an executory interest belong?

Answer 28

A grantee

Question 29

What distinguishes an executory interest from a right of entry or a possibility of reverted?

Answer 29

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.

Question 30

What are the common words of temporal limitation that signal a determinable estate followed by an executory interest?

Answer 30

until, while, during, so long as

Question 31

What are the common words of express condition that signal an estate subject to an executory interest?

Answer 31

but if, however, on condition that, provided that

Question 32

Does an executory interest take effect automatically upon the happening of the condition?

Answer 32

Yes

Question 33

What do we call a second grantee's future interest that follows a life estate determinable?

Answer 33

Remainder

Question 34

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?

Answer 34

Right of entry

Question 35

What does it mean to say that a vested remainder is subject to divestment?

Answer 35

A vested remainder is subject to divestment if the divesting condition could happen before the remainder becomes possessory. **check with Prof. Cai

Question 36

What does it mean to say that a remainder is "subject to open"?

Answer 36

A remainder is "subject to open" if it is given to a class that could expand.

Question 37

What does it mean to say that a remainder given to a class is "closed"?

Answer 37

A remainder given to a class is "closed" if no additional members can be added to the class.

Question 38

Which kind of executory interest divests the grantor?

Answer 38

springing executory interest

Question 39

Which kind of executory interest follows a grantee?

Answer 39

shifting executory interest