Future Interest & Possessory Estates
What language creates a life estate?
"To A for life" "To for the life of B in" (per autre vie" "to A for her natural life" "To A during her lifetime" "To A for the term of her life" "To A as long as he lives"
What are the two characteristics of a vested remainder?
(1) Created in ascertained persons; AND (2) Not subject to a condition precedent (other than the natural termination of the preceding estate)
What are the two characteristics of a contingent remainder?
(1) Created in unascertained persons; OR (2) Subject to a condition precedent
What are the types of vested remainder?
(1) Indefeasible Vested Remainder, (2) Vested Remainder Subject to Total Divestment, (3) Vested Remainder Subject to Open
To A and his heirs, but if B returns from Europe within the next year, then to B. B is still in Europe.
- A has fee simple subject to executory limitation - B has shifting executory interest in fee simple absolute
What is a Fee simple subject to executory limitation
- the language is similar to the Fee Simple Subject to Condition Subsequent -if limitation is breached, forfeiture is AUTOMATIC and property goes to DESIGNATED TAKER.
What does it mean that a close is closed?
-Class is closed when maximum membership has been set
O conveys to A, if and when A marries. A is single
-O has fee simple subject to executory limitation. - A has springing executory interest in fee simple absolute, if she marries
How many types of contingent remainders are there?
0
How many types of executory interest are there?
2
How many future interest are in the grantee category?
3
How many future interest are in the grantor category?
3
How many types of vested remainders are there?
3
How many future interest are there?
6
What is the difference between a condition precedent and a condition subsequent?
A condition precedent is an event that must occur BEFORE a promised performance is due whereas, a condition subsequent is a condition that arises AFTER an interest in property is created.
What is a condition subsequent?
A condition subsequent is a condition that arises after an interest in property is created and that affects the interest.
What is an executory interest?
A future interest created in a transferee which is not a remainder and takes effect by divesting (or cut short) another interest.
What is a possibility of reverter?
A future interest that ALWAYS follows a fee simple determinable. It is defined by the chance that the property might return to the grantor if the condition subsequent happened. .
To A for life, then to those children of B who survive A. Identify the future interest and possessory interest.
A is alive, B has child C. B's children have contingent remainder in fee simple. It is unknown the child who will survive A. O has reversion in Fee Simple.
What future interest is patiently waiting?
A remainder
Vested Remainder Subject to Total Divestment definition
A vested remainder not subject to a condition but possession could be cut short because of a condition SUBSEQUENT.
What is a fee simple determinable?
An estate that would be fee simple absolute but for a provision that states that the estate shall automatically end on the happening of of an event or nonevent. If staid limitation is breached, forfeiture is AUTOMATIC!
What is a condition precedent?
An event that must occur before a promised performance is due and whose nonoccurrence therefore relieves the promisor's duty to perform.
Is a vested remainder created in an ascertained or an unascertained person?
Ascertained person
To A for life, then to B and her heirs if B survives C, and if B does not survive C to C and his heirs. Identify the future interest and possessory interest.
B has a contingent remainder in fee simple subject to a condition precedent
To A for life, then to B and her heirs, but if B does not survive C to C and his heirs. Identify the future interest and possessory interest.
B has a vested remainder in fee simple subject to total divestment
To A for life, then if B graduates from college, to B. A is alive, B is still in HS. entify the future interest and possessory interest.
Before B can take he must satisfy the condition precedent. B has contingent remainder in fee simple absolute
When does a class close?
Class closes at the earliest of two times based on: 1) RULE OF CONVENIENCE: class closes when the time comes and any member can demand immediate possession; or 2) NATURAL CLOSING OF THE LASS when the possibility of births or adoptions ends.
What is a fee simple absolute?
Close to unlimited ownership-largest estate in terms of duration. May endure forever. May not be sold.
What future interest is not patiently waiting?
Executory interest
What is a shifting executory interest?
Follows a defeasible fee, and cuts short someone other than the grantor. It can follow certain vested or contingent remainder.
Is a vested remainder a future interest or possessory interest?
Future Interest
Does a vested remainder belong to a grantor or a grantee?
Grantee
What does it mean that a class is open?
If it is possible to add more members
How does the comma rule distinguish between a contingent remainder and a vested remainder..subject to total divestment.
If the conditional element is incorporated into the description of the remainder, then the remainder is a contingent (i.e. subject to condition precedent). But if after words giving a vested interest, a clause is added (separated by commas) divesting it, the remainder is vested.
Is a vested remainder subject to a condition precedent (other than natural termination of the preceding estate)?
No
Can the future interest go to a third party in a fee simple subject to a condition subsequent?
No. The future interest must be in the grantor. But in a fee simple subject to executory limitation, the future interest can go to a third party.
What is the grantor's future interest in a fee simple determinable?
Possibility of reverter
Which future interest are for the grantor?
Reversion, Possibility of Reverter, Right of Entry (Power of Termination)
What are the two types of executory interest?
Shifting and Springing
What is a springing executory interest?
Takes effect cutting short or divesting the grantor.
To A for life, then to B's first child. A is alive, B has no children. Identify the future interest and possessory interest.
The as yet unborn has contingent remainder in fee simple. O has reversion in fee simple.
What is a life estate per autre vie?
The life estate ends on the death of the person who is the measuring life. (The measuring life is the life of a third party).
What is a vested remainder subject to open?
The remainder is vested in a group, category or class of takers, at least one of whom is qualified to take possession. If no one is yet qualified to take, we would have a contingent remainder.
What is the future interest for fee simple absolute?
There are NONE. Heirs don't have cognizable future interest.
To A for life, then to B's children. A is alive, B has two children. Identify the future interest and possessory interest.
These children have vested remainder subject to open. Share decreases if another child is born
What is a life estate?
This estate's duration is measured by the life tenants life. The owners owns the property for their life.
What language is used to create a fee simple determinable?
To A [and his heirs] for SO LONG AS.... To A DURING.... To A UNTIL..... To A WHILE..... To A UNLESS.... To A UNTIl...
What language is used to create fee simple absolute?
To A and his heirs To A To A, his heirs and assigns
What language creates a fee simple subject to executory limitation?
To A, but if X events occurs, then to B and his heirs.
To A and B for their joint lives, then to the survivor in fee simple. Identify the future interest and possessory interest.
Unknown survivor has a contingent remainder in fee simple
Which future interest are for the grantee?
Vested Remainder, Contingent Remainder, Executory interest
O conveys to A for life, remainder to B, provided however that if B dies under the age of 25, to C. Identify the future interest and possessory interest.
A has life estate; B has vested remainder in fee simple absolute subject to total divestement because of the condition subsequent. C has shifting executory interest.