Future Interests - Life Estates and Vested and Conditional Remainders Flashcards
A life estate is…
A life estate is a present possessory estate that is limited by a person’s life (terminates when the measuring life dies).
Test tip: how to recognize a life estate
Look for a conveyanced with language basing it on someone’s life: A to B for B’s life
A life estate is created when the grantor uses the following language:
“O to A for A’s life” (A is the measuring life – life estate terminates when A dies)
“O to A for B’s life” (B is the measuring life – life estate terminates when B dies)
Is a life estate transferable?
Yes, A life estate is transferable.
When does a transferee’s right to transfer terminate?
Upon the death of the measuring life.
A to B for A’s life
B can transfer his interest so long as A is alive. Once A does, cannot transfer (and B has no interest at that point anyway).
Can a future interest follow a life estate?
Yes, similar to fee simple, a future interest can follow a life estate.
If possession of the land goes back to the grantor after the life estate terminates, then the grantor retains a…
reversion
If possession of the land goes to a third party after the life estate terminates, then the third party takes a…
remainder.
What are the two types of remainders?
A remainder can be vested or contingent.
What is a vested remainder?
A vested remainder is a future interest that is BOTH:
- Given to an ascertained (i.e., readily identifiable) grantee;
AND
NOT subject to a condition precedent (i.e., a condition that must be satisfied in order for the interest to vest).
What is a contingent remainder?
A contingent remainder is a future interest that FAILS EITHER of the two elements of a vested remainder
ie, contingent remainder = future interest cannot be readily ascertained OR subject to a condition that must be satisfied in order for the interest to vest.
For example:
“O conveys Greenacre to A for life, then to A’s firstborn child. At the time of conveyance, A has no children.”
A’s firstborn child has a contingent remainder, because the firstborn child is not an ascertainable grantee.
“O conveys Greenacre to A for life, then to B on the condition that B survives A.” B has a contingent remainder. B is an ascertainable grantee; however, B’s interest is subject to a condition precedent (B must survive A).
Think quick, what interest does B have, if “A grants to B for life”?
Life estate.
Think quick, what interest does B have, if “A grants to B for A’s life”?
Life estate.
Think quick, what interest does A’s firstborn child have, if ““O conveys Greenacre to A for life, then to A’s firstborn child. At the time of conveyance, A has no children.”
A’s firstborn child has a contingent remainder, because the firstborn child is not an ascertainable grantee..
A has a life estate.
Think quick, what interest does A’s firstborn child have, if ““O conveys Greenacre to A for life, then to A’s firstborn child. At the time of conveyance, A has two children.”
A’s firstborn has a vested remainder in Greenacre.
A has a life estate.
Note: if A’s firstborn dies before A, the remainder is still vested A’s firstborn, so when A dies, Greenacre will go to A’s firstborn’s heirs, unless he devised it otherwise.
Think quick, what interest does A’s firstborn have if, “O conveys Greenacre to A for life, then to B on the condition that B survives A.”
B has a contingent remainder. B is an ascertainable grantee; however, B’s interest is subject to a condition precedent (B must survive A).
Note: if B does not survive A, then the land would revert back to O, the grantor, as in a typical life estate. Right?
