Pg 5 Flashcards
What is a life estate pur autre vie?
When the duration of a life estate is measured by the life or lives of someone besides the grantee. “For the life of another.“
What is an example of a life estate pur autre vie?
“A to B for the life of C.“
This means that as long as C is alive, B owns the property. If B dies before C, the life estate still exists and it transfers to B’s heirs who own it until he dies
Is it possible for a life estate pur autre vie to be for more than one measuring life?
Yes. I.e.: “A to B for the lives of C and D.“ This means that B has it as long as C and D are alive. If one dies, the estate lasts until the last one dies
What is a defeasible life estate?
This terminates on some event or condition in addition to death.
What are the different kinds of life estates?
– life estate pur autre vie
– defeasible life estate
– marital life estate
What is an example of a defeasible life estate?
“A to B for life as long as B farms the land.“
This gives B a defeasible life estate to own the land while he farms it, but if he stops, the land reverts back to A
What are the different ways you can make a life estate defeasible?
By using a special limitation, a condition subsequent, or an executory limitation
What is the buzzword that you will see in a defeasible life estate?
“Or until“
If O grants land to A for life or until she goes to law school, what kind of interest was created in A?
A defeasible life estate that terminates either when A dies or when she goes to law school.
What is a marital life estate?
This has mostly been eliminated or modified, but if it is still recognized it is only for land that is owned by a spouse at death. The surviving spouse gets a fee simple part of the deceased’s land, which is usually between 1/3 and 1/2. It is not usually smart to claim this because intestate share is often more valuable
Are life estates freely alienable?
Yes they are freely transferrable by deed subject to restraint on alienation by the person that created them. The problem is that they are not very saleable.
If a life estate has no restraint on alienation, what can the life tenant do?
- he can sell, give, or mortgage the entire estate, or create lesser estates or nonpossessory interests such as easements
- but he cannot create an interest that will outlast the life estate or devise the estate by will (if the life estate terminates on his own death. If it is pur autre vie he can so long as the measuring life is still in existence).
What is a term estate?
A lease. This includes non-freehold estates such as term of years, periodic tenancies, and tendencies at will.
What is a future interest?
A presently existing nonpossessory interest where the owner can take possession at some point in the future.
Who are the two people that a future interest can be created in?
– the grantor: possibility of reverter, right of re-entry, or reversion
– the grantee: remainders and executory interests
What are the five different types of future interests?
Created in the GRANTOR:
– reversions
– possibility of reverter
– powers of termination
Created in the GRANTEE or third persons:
– remainders (either vested or contingent)
– executory interests
What are the four different ways that a future estate can be created?
- transferring less than your entire estate and keeping the balance
– dividing an estate into two or more smaller ones (smaller time-wise) and transferring each to different people
– transferring the entire estate subject to defeasance on the happening of a stated event - escheat: if the person dies intestate, his property escheats to the state if he has no errors
What is the best essay approach for a future estate?
If the conveyance passes property to someone at a point in the future:
- Ask if it is going to the grantor: then approach it based on a future estate created in the grantor which involves: reversions, possibility of reverter, and powers of termination
- If it will pass to a third person besides the grantor, discuss the categories of future interests created in a third person which involves remainders and executory interests
What are the three categories of future estates that are created in the grantor?
– reversions
– possibility of reverter
– powers of termination
Can future estates also include personal property like intangibles and non-consumable chattels?
Yes
What is a reversion?
When the transferor fails to transfer the entire estate, or part of the transfer was void, then a future estate is left in the transferor/his successors
Reversions follow what kinds of estates?
Life estates and non-freehold tenancies
When a reversion happens, that causes the right of what?
Immediate possession to revert to the grantor after a particular state
Reversions can only follow what kinds of estates?
Particular estates because those are ones that are less than a fee simple
Do reversions ever divest or cut short the preceding estate?
No, they only take affect when the particular estate expires
Is an estate for years considered to be smaller than a life estate?
Yes, even though the life estate owner could die before an estate for years would end
If O transfers to A for life, then to B for life, what does O retain?
A reversion because the life estates do not add up to a fee simple absolute
What is necessary to create a reversion?
There’s no need for express words, you just need to convey a lesser quantity of ownership in duration than you have
Is it ever possible for there to be a gap in conveyances?
No, ownership must be provided for into perpetuity. If there is ever a gap, then a reversion is ordered to fill it
Are reversions automatic, or must something else be done for them to occur?
They are automatic. When all prior estates expire, the grantor or his heirs get possession as a matter of law automatically without any need to bring an action, give notice, or make an entry
What occurs with this transfer? “O to A for life, then to B one day after A’s death if he survives A.”
O retains a reversion in fee simple subject to complete defeasance
What is the test for determining reversions?
If it isn’t a fee simple subject to condition subsequent or a fee simple determinable, and the property is still going to go back to the grantor on termination, then it is a reversion. If you think about it in this negative you’ll always be able to see it
Are reversions transferable?
- at common law they could not be transferred, they had to pass by descendency
– today they are freely transferrable
Is this a reversion? “R with a fee simple absolute conveys to K for life, with a remainder to P and her heirs.“
That is not a reversion because R conveyed everything he had
What is the difference between a possibility of reverter and a reversion?
- A reversion follows particular estates and is always vested and is freely transferable.
– Possibilities of reverter follow fee simple determinables, and are contingent because they are subject to conditions precedent, and in some states are not transferrable
If the owner of a reversion dies before the land reverts back to him, what happens to that reversion?
It goes to his heirs or devisees
If a person waits too long before re-entering on their reversion, what can possibly happen?
They may be held to have waived that right because courts always try to avoid forfeiture
