Pg 7

Question 1

What is the other name for remainders that are vested subject open?

Answer 1

Vested remainders subject to a partial divestment

Question 2

Does RAP apply to vested remainders subject to open?

Answer 2

Yes

Question 3

What is a vested remainder subject to open?

Answer 3

A vested remainder created in favour of a group of people capable of enlargement, so the remainder interest of any existing member is subject to partial defeasance in favour of future members of the group

Question 4

When do you often see vested remainders subject to open?

Answer 4

When they are created in favour of a class that may increase in numbers and at least one member of the class has already satisfied the requirements for having a vested interest.

Question 5

What is the requirement in order for a vested remainder subject to open to apply?

Answer 5

There must be at least one member of the class that already satisfies the requirement for having a vested interest. It needs one ascertainable person with no preceding condition

Question 6

What does the word “open” mean regarding vested remainders subject to open?

Answer 6

If more members of the group join the class, it opens to let them in, and the first members that have a vested interest partially lose ownership to others that join

Question 7

If a second child is born to A, and that opens a class under vested remainder subject to open, what happens to the first child’s interest?

Answer 7

Now the first child’s interest is reduced by half, and the second child also gets a half interest

Question 8

How do you open a class under a vested remainder subject to open?

Answer 8

If it isn’t stipulated in the conveyance, it depends on whether it is:
– an inter vivos conveyance
– or a testamentary conveyance

Question 9

How do you open a class if it is an inter vivos conveyance?

Answer 9

The class opens immediately upon the conveyance being made

Question 10

“A to B for life, then to the kids of C.“ When does the class open?

Answer 10

As soon as A transfers to B, that opens the class and then any kid of C is qualified to enter it

Question 11

When does a class open if it’s made by a testamentary conveyance?

Answer 11

By will at the death of the testator

Question 12

“A to B for life, then to the kids of C.“ When does this class open?

Answer 12

The class doesn’t open until A dies. At the time of the will C had one kid, but he died before A, so when the class opens D is shut out because he wasn’t around at the opening

Question 13

How does a class close under vested remainder subject to open?

Answer 13

The class closes at the grantor’s death or within the period of gestation afterward if it was a female that was pregnant with the deceased’s child

Question 14

What is the rule of convenience in relation to the closing of a class for a vested remainder subject to open?

Answer 14

The class closes when any member becomes entitled to immediate possession or enjoyment of his interest

Question 15

“A to B for life, remainder to the kids of C.“ When B dies, C has two kids then living. What happens?

Answer 15

They are allowed to take immediate possession, and that closes the class because of the rule of convenience. If another child is born later, he is shut out because the class was already closed before he was born

Question 16

If O transfers to A for life, with a remainder to A’s kids that reach 21, if A dies leaving one kid over 21 and six under 21, what does the rule of convenience say?

Answer 16

It doesn’t exclude the other six because the maximum class membership is determined at A’s death. The oldest kid takes the estate in fee simple subject to partial defeasance in favour of the other six that might turn 21.

Question 17

If O transfers to A for life, with a remainder to A’s kids that reach 21, if A dies leaving one kid over 21 and six under 21, when does the class close?

Answer 17

When A dies and at least one kid has reached 21, and no kid is excluded if born before the occurrence of both events. No vested remainder at all if none of B’s kids reach 21 before his death. Then the owner of the reversion would get possession subject to defeasance through B’s lifetime

Question 18

“A to B for life, then to the kids of C that reach 25. At B’s death, C has two kids, one that is aged 30, and one that is 20, and a year later a baby is born. What happens?

Answer 18

• The 30-year-old has a vested remainder because he is ascertainable and he already met the condition precedent reaching age 25, so he can go into immediate possession and that shuts the class.
• So the baby that was born later would be shut out because the class was already closed
  – The 20-year-old was alive and only had to reach 25, so the rule of convenience says that any potential class member that is ascertainable at the time the class closes but just needing to satisfy a condition to join the class is allowed to do so. Once he reaches 25 he will share ownership with the 30-year-old

Question 19

What is another name for a vested remainder subject to a condition subsequent?

Answer 19

Remainder vested subject to complete defeasance

Question 20

What is a vested remainder subject to a condition subsequent?

Answer 20

A vested remainder that terminates on the happening of some designated event or condition

Question 21

“A to B for life, remainder to C so long as liquor is not served on the premises.” What type of remainder does C have?

Answer 21

He has a vested remainder subject to condition subsequent because he is an ascertainable person, and there no condition precedent besides B dying so C has a vested remainder but he could lose it if he serves liquor. That would terminate C’s remainder and a reversion would go back to the grantor or his heirs

Question 22

What are the buzzwords involved in a vested remainder subject to condition subsequent?

Answer 22

But if, or provided that.

Basically: “this is yours BUT you’ll lose it if this happens.”

Question 23

In a nutshell, what is a vested remainder subject to condition subsequent?

Answer 23

A vested reminder that is subject to divestment or being cut short if a certain event happens

Question 24

Would the following be considered to be a vested remainder subject to condition subsequent or a vested remainder subject to open?

“To A for life, remainder to B and his heirs, but if he doesn’t reach 21, then to C and his heirs.“

Answer 24

This doesn’t have any preceding conditions, so B’s remainder is vested, but there is a condition subsequent…. so this would be a vested remainder subject to condition subsequent

Question 25

What is the difference between a contingent remainder and a vested remainder subject to divestment?

Answer 25

– Contingent reminders are subject to a condition precedent
– vested remainders subject to divestment are subject to a condition subsequent that cuts off a right of possession after it is ready to take effect/already in effect

Question 26

What is a contingent remainder?

Answer 26

It is an interest that is created in favour of an unborn or unidentifiable person or subject to an express condition precedent besides the natural expiration of all prior estates that must be satisfied before the remainder can become a present interest. This is basically any remainder that isn’t vested.

Question 27

What is an example of a contingent remainder?

Answer 27

“To A for life, remainder to B if he reaches 21.“

Question 28

What kinds of things cannot be vested?

Answer 28

Possibilities of reverter, powers of termination, and executory interests

Question 29

Almost all non-vested future interests are what?

Answer 29

Contingent

Question 30

If there’s language to suggest that there’s a condition precedent, what is it?

Answer 30

Contingent and not vested

Question 31

What is a classic contingent remainder example?

Answer 31

“To B for life, then to C’s heirs.“

This is a classic contingent remainder because no one has heirs until they die, so living people can only have heirs apparent, and as long as C is alive, his heirs are unascertained

Question 32

What is the common law approach to the doctrine of contingent remainders?

Answer 32

If a kid that has a contingent remainder doesn’t meet specifications to vest before termination of the preceding estate, then the contingent remainder is destroyed and the property reverts to the grantor

Question 33

What are the three ways a remainder can be contingent?

Answer 33

– Subject to the occurrence of some stated event
– conveyed to an ascertained person
– conveyed to an unborn person