Future Interests (themis)

Question 1

reversion

Answer 1

the future interest held by the grantor who grants a life estate or estate for years but does not convey the remaining future interest to a third party. Not subject to Rule Against Perpetuities

Question 2

Possibility of Reverter

Answer 2

automatically retained by grantor when a fee simple determinable is conveyed

Question 3

right of reentry

Answer 3

future interest held by grantor after a fee simple on condition subsequent is granted

Question 4

remainder

Answer 4

future interest created in a grantee that can become possessory upon the expiration of a prior possessory estate of known and fixed duration that is created in the same conveyance in which the remainder is created. Can be vested or contingent

Question 5

vested remainder

Answer 5

interest not subject to any conditions precedent and is created in an ascertainable grantee

Question 6

contingent remainder

Answer 6

created in grantee that is not ascertainable, or if subject to express condition precedent to grantee’s taking. Normally occurs when beneficiary is unknown or the condition precedent has not occurred yet

Question 7

Executory Interests (2 types) / in general what is it?

Answer 7

future interest in 3rd party that is not a remainder and cuts prior estate short upon occurrence of specified condition. Transferable and subject to RAP

Shifting executory interest
Springing executory interest

Question 8

shifting executory interest

Answer 8

divests interest in grantee by cutting short prior estate created in the same conveyance; shifts from one grantee to another on happening of condition

Question 9

springing executory interest

Answer 9

divests the interest of the grantor or fills a gap in possession in which the state reverts to the grantor

Question 10

Rule Against Perpetuities

Answer 10

A specific future interest is valid only if it must vest or fail by the end of a life in being + 21 years

Applies to: contingent remainders, vested remainders subject to open, executory interests, powers of appointment, rights of first refusal, and options

Does not apply to: future interests that revert to grantor (reversion, possibility of reverter, right of reentry)