Present Estates and Future Interests Flashcards
What are the rules for fee simple?
Freely transferable, devisable by will, and descendible through intestacy.
What are the rules for fee simple determinable?
The fee simple determinable is freely transferable, devisable by will, and descendible through intestacy. A possibility of reverter is transferable, devisable by will, and descendible by intestacy.
What are the rules for fee simple subject to condition subsequent?
The fee simple subject to a condition subsequent is freely transferable, devisable by will, and descendible through intestacy. Most courts hold that rights of entry are not transferable inter vivos, but most states agree they are devisable by will, and all states agree they are descendible through intestacy.
What are the rules for fee simple subject to an executory interest?
The fee simple subject to an executory interest is freely transferable, devisable by will, and descendible through intestacy. The executory interest, whether shifting or springing, is transferable in most states (not at common law), descendible, and devisable.
What are the rules for contingent remainders?
Contingent remainders are transferable in most states (not at common law), descendible, and devisable.
What are the rules for vested remainders?
Vested remainders are transferable in most states, descendible, and devisable.
What are the rules for executory interests?
What are the rules for life tenants?
A life tenant is entitled to all the ordinary uses and profits of the land, but he cannot lawfully do any act that would injure the interests of the person who owns the remainder or the reversion. If a live tenant conveys their interest, the grantee has a life estate pur autre vie.
Waste - Natural Resources: A life tenant may not consume or exploit natural resources on the property. However, there are several exceptions to this rule: (1) where necessary for repair and maintenance of the land, (2) when a life tenant is expressly given the right to exploit such resources, (3) the land was used in exploitation prior to the grant and the grantor intended the life tenant to have the right to such exploitation, and (4) the land is suitable only for such exploitation.
Duty to Pay Carrying Costs: This duty is limited to the extent of the total income or profits derived from the land since the life tenant acquired ownership of the life estate. If the life tenant is in possession of the land herself, the liability for costs is limited to an amount equal to the economic benefit derived by her from the land or the reasonable market value of its use (rental value), whichever is greater. If the land is unproductive, the life tenant has not obligation to pay carrying costs.
Taxes: A life tenant has an obligation to pay all ordinary taxes. If a future interest holder pays these taxes, the future interest holder is entitled to reimbursement and may compel the life tenant’s contribution or even subject the estate to a lien for the amount expended.
Open Mines Doctrine: If mining was done before the life estate began, the life tenant may continue to mine the property but is limited to the mines already open.
What are the rules on restraints on alienation?
There are three restraints on alienation: (1) disabling restraints, under which any attempted transfer is ineffective, (2) forfeiture restraints, under which an attempted transfer results in a forfeiture of the interest, and (3) promissory restraints, under which an attempted transfer breaches a covenant. A disabling restraint on any legal interest is void. Forfeiture and promissory restraints for life estates and life estate remainders are generally valid, but forfeiture and promissory restraints for fee simple estates and fee simple remainder are generally only valid if prescribed for a limited time and for a reasonable purpose.
What does the Rule Against Perpetuities apply to?
The Rule Against Perpetuities states that an interest is void if there is any possibility, however remote, that the interest may vest more than 21 years after some life in being at the creation of the interest. The Rule applies to contingent remainders, executory interests, class gifts (even if vested remainders), powers or appointment, and options to purchase and rights of first refusal. The Rule does not apply to gifts from one charity to another charity, vested remainder, and reversionary interests.
Common scenarios that violate the Rule Against perpetuities include an executory interest following a defeasible fee, age contingencies beyond the age of 21 in an open class, the fertile octogenarian (coupled with age contingency), future interests contingent on an unborn widower, administrative contingencies, and a right of refusal that extends to heirs.
