Present & Future Interest Terms

Question 1

FS Absolute?

What is it?

Answer 1

Largest package of rights in the modern day; presumed to give all that O has unless O indicates otherwise.

Question 2

FS absolute

magic words

Answer 2

“to A”
“to A and his/her heirs”
“to A in FS”

Question 3

FS Determinable

what is it?

Answer 3

Defeasible in favor of grantor.

Ends automatically upon the occurrence of a
named event.

If the stated condition is violated, forfeiture of the estate is AUTOMATIC!!

Clock for adverse possession (AP) begins
ticking the second that the event occurs.

Question 4

FS determinable

magic words

Answer 4

“as long as”
“so long as”
“during”
“until”
“while”

(words indicate length of time/duration of interest)

Question 5

what does grantor have with FS determinable?

Answer 5

Automatic or Possibility of Reverter

(automatically returns to G/T)

Question 6

FS Subject to Condition Subsequent

what is it?

Answer 6

Defeasible in favor of grantor.

Doesn’t end automatically; requires action
by grantor or successor.

Clock for AP begins ticking once reverters
initiate measures to kick the disseisor off the property.

Question 7

FS Subject to condition subsequent

major words

Answer 7

“but if”
“provided that”
“provided however”
“on condition”
“on the condition”
“if”

(there is a condition attached to the transfer)

Question 8

What does grantor have with FS subject to condition subsequent?

Answer 8

Right of Entry

(not automatic. G/T must take action to claim interest.)

Question 9

what is a condition precedent?

Answer 9

• In the case of Condition precedent, the vesting of the estate is postponed till the performance or event occurs

Question 9

what is a condition subsequent

Question 10

FS subject to executory limitation

what is it?

Answer 10

Defeasible in favor of 3rd party grantee.

Conventional wisdom: FSSEL automatically
cut short if some event occurs (more like FSD in this regard)

subject to RAP

Question 11

FS subject to executory limitation

major words

Answer 11

“unless or until…”
“then to…”
“but if…”

(indicates a duration or condition LNG with the transfer to a third party. LNG helps create adding interest to third party.)

Question 12

what does grantor have with FSSEL?

Answer 12

Springing Executory Interest

Question 13

what does grantee have with FSSEL?

Answer 13

Shifting Executory Interest

Question 14

Life Estate

what is it?

Answer 14

Ends with the death of a named person, usually holder of the estate.

Alienable by gift or sale. If holder sells the life estate, the purchaser has a life estate pur autre vie – a life estate according to A’s lifespan.

Question 15

life estate

major words

Answer 15

“for life”
*“for life of A” (LE pur autre vie)

Question 16

what does grantor get with life estate?

Answer 16

Reversion if

Question 17

what does grantee get with life estate?

Answer 17

Remainder in general

Question 18

under Life Estate conveyance–> what are the types of remainders?

Answer 18

1. Contigent Remainder
2. Vested Indefeasibly Remainder
3. Vested Subject to Open Remainder
4. Vested Subject to Divestment Remainder

Question 19

Contingent Remainder RULE

Answer 19

Created to give to unscertained Person, an unborn child, OR Condition Precedent based on LNG

Subject to RAP

Question 20

Vested Indefeasibly Remainder RULE

Answer 20

o Its certain to become possessory upon death so we know who gets it

o AND Cannot be divested/split up

Question 21

Vested Subject to Open Remainder RULE

Answer 21

o Remainder is in Class/group

o AND Class can increase (anybody included like adopted kid, husband, cousin, friend, etc.….)

Subject to RAP

Question 22

Vested Subject to Divestment Remainder RULE

Answer 22

o Condition subsequent
o OR Remainder is known
o AND Can be cut short

Question 23

RAP Rule

Answer 23

1. No Interest is good unless
2. if it vests at all
3. no later than 21 years
4. after some life in being
5. at the creation of the interest

Question 24

RAP step 1

Answer 24

Determine if FI is subject to RAP?

choose the 3 interest

Question 25

RAP step 2

Answer 25

determine when the perpetuity window begins the moment the legal instrument took effect:

conveying a deed

OR divesting a will

Question 26

RAP step 3

Answer 26

determine what must happen for the FI to vest or forever fail to vest

Question 27

RAP step 4

Answer 27

identify the life in being that is we must kill off everyone who does not fall as LIB

Question 28

RAP step 4

can the Life In Being person violate RAP?

Answer 28

If the condition is an age that can be met within 21 years–>likely valid

OR if condition is an age longer than 21 years–>likely invalid–>violates RAP