Remainders

Question 1

Remainder

Answer 1

A future interest created when a grantor conveys an inherently limited possessory estate and, in the same conveyance, conveys the future interest to a second grantee.

Question 2

“O to A for life, then to B.”

Answer 2

A has a possessory estate in life estate

B has a remainder estate in fee simple absolute.

Question 3

“O to A for life, then to O.

Answer 3

A has a posessory estate in life estate

O has a reversion in fee simple absolute.

Question 4

Vested Remainder (Generally)

Answer 4

Certain to become possessory.
i.e. “O to A for life, then to B.”
B’s remainder is vested. B has a remainder estate in fee simple. (No need to survive).

Question 5

Contingent Remainder (Generally)

Answer 5

Not Certain to become possessory.
- Some condition in addition to the termination of the prior estate.
Type 1: Unancertained remainder
- “O to A for life, then to B’s heirs.”
Type 2: Remainder Subject to A Condition Precedent.
- “O to A for life, then to B if B has reached 21.”

Question 6

Condition Precedent.

Answer 6

• Something That has to happen before the remainder-holder can take possession.
  i. e. “O to A for life, then to B if B has reached 25 years old.”

Question 7

Vested Remainder (Two Requirements)

Answer 7

1) It is given to an ASCERTAINED person, and

2) It is not subject to a CONDITION PRECEDENT, other then the natural termination of the estate.

Question 8

Contingent Remainder (Two Requirements)

Answer 8

1) It is given to an UNACERTAINED PERSON, OR

2) It is subject to a CONDITION PRECEDENT other than the natural termination of the Estate.

Question 9

Ascertained Taker must be both:

Answer 9

Born and Identified.

Question 10

Class Gifts

Answer 10

• Remainder conveyed to a class of persons

- Vested, if One of the remainder-holders is ascertained.

Question 11

Conveyances where Remainder-holder is NOT ASCERTAINED.

Answer 11

“O to A for life, then to A’s first child (A has no children).
“O to A for life, then to B’s heirs. (Cannot know who will be B’s heirs, until he dies).

Question 12

Condition Precedent

Answer 12

• A condition other than the ending of the prior estate that must be met before the remainder is ready to become possessory.
• Found ONLY in the description of the Remainder that is limited.
• NOT found in the description of the estate after the remainder interest.

Question 13

“O to A for life, then to B, but if B does not survive A, then to C.”

Answer 13

• Limiting Condition placed in the description of the estate after the remainder.
• NOT A CONTINGENT REMAINDER.

Question 14

“O to A for life, then to B if B has graduated college.”

Answer 14

A has a possessory estate in a life estate
B has a contingent remainder interest subject to a condition precedent.
O has a reversion in fee simple absolute.