Present Estates Flashcards
What is the greatest form of property ownership?
Fee Simple
Carries the greatest rights and has the fewest limitations.
What are the three types of transfers possible with Fee Simple?
- Devisable (transfer by will)
- Descendible (transfer by intestacy)
- Alienable (transfer inter vivos during holder’s lifetime)
Fee Simple allows for various methods of transfer.
What is Fee Simple Absolute (FSA)?
The highest form of property ownership, granting full rights indefinitely without conditions.
Typical form of ownership.
What phrase specifies that a fee simple absolute is created?
“and his heirs”
Indicates that what is being created is a fee simple absolute.
What is a Fee Simple Determinable (FSD)?
Automatic termination if a certain condition is triggered
Grantor has a reversionary interest in land.
Give examples of temporal limitation language in FSD.
- so long as
- during
- until
These phrases indicate conditions for termination.
What is a Fee Simple Subject to Condition Subsequent (FSSCS)?
Condition occurs + Grantor exercises right to take back land
Gives present interest in the land immediately.
What is the language used for a Fee Simple Subject to Executory Limitation (FSSEL)?
To A, but if A dies then to B
A’s interest is subject to a condition that affects property transfer.
What defines a Life Estate?
Interest in land for the duration of a person’s lifetime
Cannot devise it in a will or pass it to heirs.
What is the key language for a Life Estate?
“To A for life”
Indicates the duration of the life estate.
What are the four types of Leasehold estates?
- Term of Years
- Periodic Tenancy
- Tenancy at Will
- Tenancy at Sufferance
Each type has distinct characteristics regarding duration and termination.
What does Per Stirpes mean?
Estate divided equally among branches of family
Deceased parent’s % share passes on to children.
What does Per Capita mean?
Divided by how many beneficiaries Grantor has at RIP
Grandchildren get an equal % share if parent RIP.
What is Defeasance?
Automatically reverts property back to grantor upon condition
Provides certainty that the interest disappears on its own.
What is Divestment?
Transfers property to third person FSSEL, NOT back to grantor
Represents a loss of a vested interest.
What is a Vested Remainder?
Must be held by an ascertained person and must become possessory upon the natural termination of the preceding estate
Guaranteed to transfer to an identified person.
What is a Contingent Remainder?
A remainder interest in property that depends on a future event or an unascertained person
Not guaranteed to vest.
What defines a Vested Remainder Subject to Open?
The class is subject to open because more people can join
Based on the existence of at least one beneficiary.
What is an Executory Interest?
Always unvested; it doesn’t take place immediately and doesn’t follow the natural expiration of a prior estate
Can be springing or shifting.
What is a Springing Executory Interest?
Divests from grantor in the future by “springing” to a 3rd party upon the condition precedent
Involves a gap in ownership.
What is the Rule Against Perpetuities (RAP)?
No interest is good unless it must vest, if at all, 21 years after some life in being at the creation of the interest
Aims to prevent interests from lasting indefinitely.
What are examples of interests that RAP applies to?
- Contingent remainders
- Executory interests
- Class gifts
These interests must vest within the RAP timeframe.
What are safe alternatives to avoid RAP violations?
- Require class to vest by age 21
- Close the class at a fixed time
- Limit options to be exercised within 21 years
- Limit trusts to ‘lives in being plus 21 years’
These measures help ensure compliance with RAP.
