Future Possessory Interests

Question 1

3 Future Interests in Grantor

Answer 1

Possibility of Reverter (Fee simple determinable)

Right of Entry (FSSCS)

Reversion (Grantor conveys estate of lesser duration than what they had. E.g., O has fee simple absolute and grants A the property for 99 years)

Question 2

Future Interests in Third Parties

Answer 2

Contingent or Vested Remained (unless an executory interest)

Possession on natural expiration of preceding estate (typically life tenant or terms of years)

Question 3

Contingent Remainders

Answer 3

(1) It’s created in unborn or unascertained persons, or

(2) It’s subject to a condition precedent, or both.

In other words, a remainder may be contingent as to person or as to event.

Question 4

Vested Remainders

Answer 4

A vested remainder is one created in an existing and ascertained person, and not subject to a condition precedent.

Three types of vested remainders:
(1) the indefeasibly vested remainder (holder is certain to acquire an estate in the future, with no strings or conditions attached.)

(2) the vested remainder subject to a condition subsequent.

(3) the vested remainder subject to open (Created in a class of persons that is certain to become possessory, but is subject to diminution—e.g., the birth of additional persons who will share in the remainder as a class.)

Question 5

When does a class close?

Answer 5

Rule of Convenience: When any member can demand possession.

Womb Rule: Persons in gestation at the time the class closes are included in the class.

Question 6

Abolished Common Law Rules Regarding Remainders

Answer 6

These will never be the right answer choice:
- Destructibility of Contingent Remainders
- Rule in Shelley’s Case (Rule Against Remainders in
Grantee’s Heirs)
- Doctrine of Worthier Title (Rule Against Remainders in
Grantor’s Heirs)

Question 7

Executory Interests

Answer 7

A future interests in third parties that is either a:

Shifting Interest:
- Divests a transferee’s preceding freehold estate
- Follows a defeasible fee, and cuts short someone other than the grantor

Springing interest
- Follow a gap in possession or cut short a grantor’s estate
- Cuts short the interest of O, the grantor.

Question 8

Transferability of Remainders and Executory Interests

Answer 8

Vested remainders are fully transferable, descendible by intestacy, and devisable by will

Contingent remainders and executory interests are descendible and devisable, provided survival is not a condition to the interest’s taking.

NOTE: Any future interest that is transferable is reachable by creditors.