Life Estates and Remainder

Question 1

Rights can be divided ___

Answer 1

Substantively

Question 2

Property can be divided ___

Answer 2

Temporally

Question 3

Restraints on Alienation

3 Types

Answer 3

– Disabling Restraint
• Withholds from the grantee the power of transferring his
interest.
• Always void, on all estates.

– Forfeiture Restraint
• Provides that if the grantee attempts to transfer his interest, it
is forfeited to another person.
• If reasonable, valid restraint on life estates only.

– Promissory Restraint
• Provides that the grantee promises not to transfer his
interest.
• If reasonable, valid restraint on life estates

Question 4

Restraints on Alienation

4 Policy Objections

Answer 4

Make property unmarketable; and land may be made
unavailable for best use.

– Tend to perpetuate concentration of wealth by making it
impossible for an owner to sell property and to consume the
proceeds of the sale.

– Discourage improvements on the land because owners and
lenders cannot sell.

– Prevent owner’s creditors from reaching the property.

Question 5

Waste

3 Types

Answer 5

Affirmative

Permissive

Ameliorative

Question 6

Permissive Waste

Answer 6

Occurs when the life tenant allows the property to fall into disrepair or fails to take reasonable measures to protect the land

Question 7

Affirmative Waste

Answer 7

Affirmative acts that decrease the value of a future interest

Life tenant may not consume or exploit natural resources on the property

• 4 Exceptions (“Open Mine Doctrine”):
  1. Reasonable amounts for repair and maintenance
  2. L/T is given express permission in the grant (written)
  3. Prior to grant, land was used in such exploitation
  4. When land is suitable ONLY for such exploitation (i.e. a mine)

Question 8

Ameliorative Waste

Answer 8

• Substantial changes in the use of property that increase its value
• A L/T can only make changes if the market value of future interests are not diminished and either:
  1. The holder of the remainder or reversion does not object; OR
  2. Substantial and permanent change(s) in neighborhood conditions deprived the property of reasonable productivity in its current form.

Question 9

Rule of Convenience

Answer 9

O to A for life, then to the children of B.
– At the time of the conveyance, B has two children, C and D.
• C and D have vested remainders subject to open.
• At the time that A dies, the class closes and C and D (and whatever additional children were born by that time) take their remainders.
• B’s children born after A dies are excluded.

Rule of construction, not of law.