Pg 8

Question 1

What is involved in a type of contingent remainder called “subject to occurrence of some stated event“?

Answer 1

Ie: remainder to B and heirs if B marries C

B must first marry C as a condition precedent

Question 2

What is another example of a contingent remainder “subject to the occurrence of some stated event“?

Answer 2

O grants land to A for life, remainder to the oldest daughter of A that survives him. He has three daughters at the time.

Survival is a condition precedent.

Question 3

What is the most common type of stated event when there’s a contingent remainder “subject to the occurrence of some stated event“?

Answer 3

Surviving the prior estate holder

Question 4

What is an alternate contingent remainder?

Answer 4

O grants land to A for life, then if B is a student at A’s death, to him, but otherwise to C

B’s interest is subject to the condition of being a student, and C’s is subject to the condition of B not being a student.

Question 5

What is involved in the contingent remainder category of “conveyed to unascertained persons”?

Answer 5

Remainder to B’s first kid to reach 21 and his heirs

One of the kids must reach 21

Question 6

Anytime there is wording where a remainder is left to a living person‘s “heirs” what does that always mean?

Answer 6

The remainder is always contingent because no one is the heir of a living person. Only the dead have heirs, so remainder to a living person‘s heirs is contingent because it is to an unascertained person

Question 7

What is involved in the contingent remainder category of “conveyed to unborn persons“?

Answer 7

Reminder to B’s next born kid and heirs

Another child must be born

Question 8

Is it possible for a conveyance to start out as contingent, and then change?

Answer 8

Yes, changed circumstances can make it go from contingent to vested. It happens when the contingent remainder no longer fits its own definition.

I.e.: an unascertained person becomes ascertained, the unborn are born, or a stated event occurs and the contingent remainder becomes vested

Question 9

How do you destroy/void a contingent remainder?

Answer 9

It becomes void once it is impossible for the contingency to occur. I.e.: if the contingency is marriage to H, but H dies. Then possession reverts back to the grantor. Since destruction is always a possibility, the grantor of a contingent remainder always retains a reversion, unless he provided for a vested remainder instead of reversion.

Many states have abolished this and say that remainders vest and become possessory whenever the contingency is resolved, which can be before or after the end of the preceding particular state

Question 10

What is abeyance of seisin?

Answer 10

A medieval word for the gap when land reverts back to the grantor while waiting for the next phase

Question 11

Is it necessary for corporations to have words of inheritance?

Answer 11

No, because corporations do not have heirs

Question 12

What are executory interests?

Answer 12

Non-reversionary future interests that follow a fee simple determinable or a fee simple conditional. This is a future interest created in favour of a third-party that cuts short the previous estate before it naturally terminates

Question 13

What are the two different types of executory interests?

Answer 13

Shifting executory interest and springing executory interest

Question 14

What are the three yeses involved in executory interest?

Answer 14

You need at least one of these:
– must directly follow a fee simple
– must divest a prior estate
– or must directly follow the possession by the grantor

Question 15

Do executory interests have to be created simultaneously with a present estate?

Answer 15

No, but they often are

Question 16

How does an executory interest become either a present or a vested future interest?

Answer 16

Automatically on defeasance of a present estate or a vested remainder by operation of an executory limitation

Question 17

“To A, but if A dies without surviving kids, then to B.” What is this an example of?

Answer 17

Everything after the gift to A is an executory limitation

Question 18

What is the only time you see an executory interest?

Answer 18

If a third-party gets property if a fee is defeated on fee simple determinable or if a right of entry/power of termination is given to a third-party

Question 19

What is the key to an executory interest?

Answer 19

It cuts short/divests the life estate. It doesn’t wait for natural termination, it just grabs it away

Question 20

Is an executory interest ever vested?

Answer 20

It is never vested, is usually just contingent

Question 21

Is there a limit on the number of executory interests that can be created at once?

Answer 21

No

Question 22

Why are executory interests indestructible?

Answer 22

Because they are equitable and the subject matter is personal property

Question 23

Does it matter for an executory interest whether the grantor physically takes possession during the gap?

Answer 23

No, all that matters is that he has the right to possession

Question 24

How does a delayed effect work for an executory interest?

Answer 24

The grantor doesn’t create an intervening estate at all, he just wants to make a conveyance with a delayed effect “to R and his heirs beginning two years from the date hereof.“ There is no particular estate to precede the future estate, instead the grantor has just subjected his fee simple to an executory interest

Question 25

What is an example of a determinable fee subject to an executory interest?

Answer 25

“O grants land to A and her heirs while the UN has headquarters in New York, then to B and his heirs.

B has an executory interest

Question 26

What is a vested remainder subject to an executory interest?

Answer 26

If there are two or more non-reversionary future interests that follow a simultaneously created present interest remember:

• if the first interest is a vested remainder subject to conditional defeasance, the other interests will be executory.
• But if the first future interest is a contingent remainder, the other future interests will also be contingent remainders.

Classifying the first future interest is the key to classifying the others

Question 27

What type of interest is this? “To A for life, reminder to B, but if B predeceases A, then to C.“

Answer 27

Remainder to B is vested subject to complete defeasance because B dying before A is a condition subsequent regarding B’s remainder, but C’s interest is a shifting executory interest that can vest only if B’s vested remainder is completely defeated by him dying before A, which is a condition subsequent regarding B’s vested remainder and a condition precedent regarding C’s executory interest. Here the transferor doesn’t keep a reversion because B’s vested remainder in fee simple exhausts the fee simple originally owned by the transferor

Question 28

What is a shifting executory interest?

Answer 28

It transfers property from one grantee to another by cutting off the preceding interest of the grantee and passing title to a third-party on the occurrence of a designated event or condition

Question 29

what is an example of a shifting executory interest?

Answer 29

A to B and his heirs so long as alcohol is not served on the premises, and if it is, title passes to C for life.

This shifts from B to C (from one grantee to another).

Question 30

What do the words “but if“ show in the context of a shifting executory interest?

Answer 30

That the interest will never become possessory without vesting or cutting short another’s vested estate. It is shifting because it truncates a vested estate of another

Question 31

If O grants land to A for life, but if A goes to law school, then to B. What is the interest that has been created?

Answer 31

B has a shifting executory interest because “but should” truncates A’s estate. If B’s interest ever becomes possessory, it will divest A’s life estate and O’s reversion