Present Estates and Future Interests Flashcards
A fee simple is absolute ownership of indefinite or potentially infinite duration. It is freely transfersable, devisable by will, and
descendible through intestacy
There is _____ future interest with a fee simple absolute
NO
A defeasible fee is a fee simple with
a catch
to be defeasible means it’s capable of risk of
forfeiture
a FSD terminates upon the happening of a stated event and automatically
reverts to the grantor
FSD is created by using ____ language
durational
examples of durational language
“to A for so long as …”
“to A while….”
“to A during…”
“to A until….”
in a FSD, if the stated condition is violated, then forfeiture is
automatic
the future interest that accompanies a FSD is a
possibility of revertor (POR)
a POR means that the estate automatically reverts back to the grantor upon
the happening of the stated event
the POR is TDD meaning its
transferable, devisable by will, and decendable by intestacy
A fee simple subject to condition subsequent is an estate in which the grantor reserves the right
to terminate the estate upon the happening of a stated event, meaning that the estate does NOT AUTOMATICALLY terminate - grantor MUST take some action
the two main ingredients for a fee simple subject to condition subsequent is
(1) use of conditional words like “upon condition that…. provided that… but if”
AND
(2) an explicit statement of the grantor’s right of re-entry
when thinking about the fee simple subejct to condition subsequent, remember the key phrase “its my….”
prerogative
the “right of entry” that accompanies a fee simple condition subsequent is also called a
power of termination
If a fee simple terminates upon the happening of a stated event and then passess to a _____ rather than ______ then the third party has an ____
3 party
reverting to the grantor or giving grantor right to terminate
executory interest
The future interest that accompanies the executory interest is a
shifting executory interest
words of mere desire, hope, aspiration, expectation, or motivation are insufficient to render an estate a ___
defeasible fee
An absolute restraint on alientation that purports to restrict the transferee’s ability to transfer a fee simple is
NOT ALLOWED
a life estate is one measured by one’s life or the lives of
one or more persons
a life estate is measured in explicit ____ and NEVER term of years
lifetime terms
A life estate “pur autre vie” is measured by a life other than
the grantee’s
ex: to A for the life of B
a life estate pur autre vie also results when the life tenant conveys their life estate to ___
another
The future interest that accompanies a life estate is a
reversion, if held by O
remainder, if held by third party
a life tenant must not commit waste. Three types of waste
(1) voluntary waste
(2) permissible waste
(3) ameliorative waste
If a future interest is held by a transferor, it must be
(1) possitility of revertor
(2) a right of entry
(3) a reversion
if a future interest is held by someone other than the transferor, it must be
(1) a contingent remainder
(2) a vested remainder (3 types)
(3) executory interest (2 types)
a reversion is the estate left in a grantor who conveys _____ than they own
less
a reversion is tranferable, devisable by will, and ___
inheritable
All reversionary interests are VESTED and thus not
subject to RAP
if a future interest is held by someone other than the grantor, it has to be either
(1) a contingent remainder OR
(2) a vested remainder OR
(3) executory interest
Executory interests: (1) shifting (2) springing
Vested remainders: (1) the indefeasibly vested remainder, (2) vested remainder subejct to complete defeasance, (3) vested remainder subject to open
A remainder is a ____in a ____ that can become possessory on the natural expiration of the preceding estate
- future interest
- third person
a remainder must be _____ created
expressly
remainders are either ____ or ____
vested or contingent
The remainder is very ____ never alone, and always accompanying a
sociable
preceding estate of known, fixed duration (like life estate or term of years)
Remainders are ______ they never cuts the prior taker short or divests it
patient and polite
can a remainder ever follow a fee simple estate?
NO because it is of potentially infinite duration
A remainder is contingent if it is (1) created in _______ persons
(1) unborn or unascertained persons, or
(2) subject to a condition precedent,
OR BOTH
a contingent remainder may be contingent to a ___ or ____
person or event
a vested remainder is one created in an existing and _______and is not subject to a ____
ascertained
condition precedent
3 types of vested remainders
(1) indefeasibly vested remainder
(2) vested remainder subject to total divestmenet
(3) vested remainder subject to open
Rule of convenience says that in the absense of express contraty intent, a class closes (that is, no one born after that time may share in the gift) when
some members of the class can call for distribution of their their of the class gift
AKA when ANY member of the class can demand possession
A shifting executory interest always follows a ______ and cuts short someone _______
defeasible fee
other than the grantor
a springing executory interest cuts short the interest of
O, the grantor
Does RAP apply to vested intersts?
NO
unless its a vested remainder subject to open
what are the 4 RAP steps
(1) determine the intersts
(2) how does the future interest holder take
(3) find measuing life
(4) when will we knwo if the future interset holder can take
RAP only applies to
Contingent remainders
Executory interests
certain vested remainders subject to open
RAP does NOT apply to any of the 3 future intersts capable of creation in the ___
or to
grantor =
(1) POR
(2) right of entry
(3) reversion
indefeasibly vested remainders, or
vested remaindres subejct to total divestment
BRIGHT LINE RULE - an executory interest with no time limit violates __
violates RAP
