Estates & Future Interest (Ch 5)

Fee Simple Absolute

"fee simple". Holder has all rights extended from the "bundle of sticks". Duration is potentially infinite, OSEA it may endure forever, w/o limitation or condition. No future interest accompanied. If phrase "& his heirs" is missing, courts typically assumed fee simple absolute.

Future Interest retained by the transferor

(1) Reversion (2) Possibility of Reverter (3) Right of entry

Future Interest created in a transferee

(1) indefeasibly vested remainder (2) vested remainder subject to divestment (3) vested remainder subject to open (4) contingent remainder (5) executory interest

3rd Restatement distinctions on Future Interest

(a) future interest is either a remainder (if created in a transferee) OR (b) reversion (if retained by the transferor); (c) executory interest is classified as a "remainder" & (d) possibility of reverter are classified as "reversions." Ex. If Paul conveys Greenacre to "ann for life, then to Brad, but if Brad predeceases Ann, to Jamal." Brad and Jamal would each receive a remainder-- rather than Brad's future interest being a remainder and Jamal'san executory.

Possibility of Reverter (Future Interest Retained by the Transferor)

-Arises when a transferor conveys an estate to a third party that is smaller than the estate she holds. -Def: future interest retained by the transferor who holds a fee simple absolute, but conveys a fee simple determinable. Since fee simple determinable might end, the transferor retains future interest.

Right of Entry (Future Interest Retained by the Transferor)

-Arises when a transferor conveys an estate to a third party that is smaller than the estate she holds. -Def: future interest retained by the transferor who holds a fee simple absolute, but conveys a fee simple subject to a condition subsequent. The right of entry does not become possessory until AND unless the holder takes affirmative steps to regain possession. Transferor must re-enter, give formal notice, or bring legal action to terminate FSSCS holder's estate.

Reversion (Future Interest Retained by the Transferor)

-Arises when a transferor conveys an estate to a third party that is smaller than the estate she holds. Def: future interest remaining in the transferor when she grants a vested estate of less quantum (potential duration) than she began with. The transferor retains a reversion by operation of law, and the smaller estate must be fee tail, life estate, or leasehold.

Rule in Shelley's Case (Rule Against Remainders in Unascertainable grantee's Heirs)

-converts the contingent remainder in the heirs of the grantee into a vested remainder in that grantee. The rule provides: If a freehold estate is given to a person and, in the same instrument, a reminder is given to the heirs (or the heirs of the body) of that person, he takes both the freehold estate and the remainder. The rule applies if ALL 4 requirements are satisfied: (1) one instrument (2) creates a freehold estate in a transferee (3) a remainder in that transferee's heirs (4) both interests are legal or both equitable Effect: Words of purchase ("to B's heirs") become words of limitation ("to B and his heirs"). Since B holds both the present possessory interest and the complete future interest B's interest merge and B now holds a fee simple absolute. B is ascertainable, so any future purchasers can deal directly with B. Ex. O conveys "to B for life, then to B's heirs." Initial effect grants B a life estate and B's heirs a contingent remainder in fee simple, leaving a reversion in O. Under the Rule in Shelley's Case, B holds both the life estate and the remainder. The remainder intended for B's heirs becomes a reminder in fee simple in B. The contingent remainder is transformed into a vested remainder. *THE RULE HAS BEEN ABOLISHED BY STATUTE IN ALMOST ALL JURISDICTIONS, BUT IT IMPORTANT TO KNOW TO APPLY TO INSTRUMENTS CREATED BEFORE THE RULE WAS REPEALED.

Doctrine of Worthier Title (Rule Against Remainders in Grantor's Heirs)

-grantor can not create a remainder or executory interest in his heirs. IF the grantor attempted to create such an interest, that interest was void and the grantor was deemed to retain a reversion. -the doctrine does not apply if the transferor clearly manifests an intent to create a future interest. The doctrine is as follows: If a grantor creates a remainder or an executory interest in his own heirs, the grantor retains a future interest in himself rather than creating a future interest in those heirs. The doctrine applies: (1) A conveyance creates a remainder or executory interest. (2) in the grantor's heirs. Effect: words of purchase ("to O's heirs) become words of limitation ("to O and his heirs"). The contingent future interest in the heirs (who are unascertainable at the time) becomes a vested future interest in the grantor (who is ascertainable). Ex. O conveys "to G for life, then to O's heirs." Initially, the conveyance appears to grants a life estate to G and a contingent remainder to O's heirs, leaving O with a reversion. But, since the conveyance creates a remainder in the grantor's heirs (O's heirs), the doctrine applies. The future interest in O's heirs becomes a future interest in O. *compared to Shelley's Case: THIS doctrine applies to both remainders and executory interest in the heirs of the transferor while SC applies only to remainders in the heirs of transferees.

Rule Against Perpetuities (rule of the living) "RAP"

-promotes marketability by limiting an owner's ability to create speculative, contingent future interest. -"rule of proof": contingent interest is only valid if you can logically prove that it will either vest or forever fail to vest within the "perpetuities time" (a life in being plus 21 years). - requires "imagination" of one situation Rule: "no interest is good (1) unless it must vest, if at all, ~concern is vesting within perpetuities period, not during. (2) no later than 21 years after 'some life in being' -add 21 years to the date of death of the last individual who was alive when the interest was created. This is not a wait and see rule, but considers whether an interest is logically certain to vest. (3) at the creation of the interests" -single moment in times. (i.e. inter vivos delivery, devisers death. Only 3 interests are subject to this rule: contingent remainders, executory interest, and vest remainders subject to open. All present possessory estates and future interests in a grantor (RRR) are deemed vested in this rule. Indefeasibly vested remainders & vested remainders subject to divestment are exempt from this rule. Effect: allows a transferor to control title to his property during the lifetimes of persons alive at transferor's death and into the next generation up to age 21 (age of majority). IF there is ANY possibility OR IF ANY set of facts show that the interest might vest more than 21 years from the death of the relevant lives in being, the future interest is void when created (ab initio). SEE "process of identification"

Doctrine of Destructibility of Contingent Remainders

-requires all contingent reminder to vest by the end of the preceding estate. This rule is applied on a "wait and see basis." The doctrine provides: "Any contingent remainder that has not vest at the termination of the preceding freehold estate is destroyed." Doctrine applies when: (1) a contingent remainder (2) does not vest before the preceding freehold estate (typically a life estate) ends. Effect: If the holder (either AP not found or CP is not fulfilled) of the remainder cannot take possession at the expiration of the preceding estate, then that contingent remainder is destroyed forever; the right to possession moves to the next vested interest. The doctrine terminates reminders that might vest too far in the future. Ex. O conveys "to G for life, then to M and her heirs if M marries." As a result of this conveyance, G has a life estate and M has a contingent remainder in fee simple, while O holds a reversion. If the property location in a jurisdiction recognizing the doctrine, then: if M is not married by the time of G's death, M's contingent remainder is "destroyed." and she loses her interest in the estate. O's reversion then becomes possessory. *HAS BEEN ABOLISHED IN ALMOST EVERY JURISDICTION. MODERN APPROACH - IF A CONTINGENT REMAINDER DOES NOT VEST BEFORE THE PROIR ESTATE ENDS, IT BECOMES AN EXECUTORY INTEREST. THEREFORE, IF M IS NOT MARRIED AT G'S DEATH, THEN O'S REVERSION BECOMES POSSESSORY, O NOW HOLDS A FEE SIMPLE SUBJECT TO AN EXECUTORY LIMITATION, AND M'S REMAINDER BECOMES A SPRINGING EXECUTORY INTEREST.

Indefeasibly Vest Remainder (Future Interests Created in a transferee)

-sometimes abbreviated as "vested remainder" Def: the remainder is vested IF (1) it is created in an ascertainable person (AP) -AP is both alive and identifiable at the time of transfer Ex. A person's heirs cannot be ascertained until his death. Suppose, O conveys "to B for life, then to D's heirs." If D is still alive, the remainder in the yet to be ascertainable heirs has not vested. & (2) it is not subject to a condition precedent (CP) other than the natural termination of the prior estate. Ex. Suppose O conveys "to B for life, then to D if D becomes president." D must meet CP (become president) before his interest can become possessory; his remainder is not vested.

Freedom of Alienation (why can't a grantor/testator/decedent leave a "cannot be sold clause" in any form of freehold estate?)

= Freedom of transfer (ch 1), and is VERY close to an absolute right beside 3 exceptions. The underlying theory is that alienability is necessary to ensure productive use of land.

Disabling Restraint on Alienation

A declaration in the deed or will grantee cannot separately transfer the estate (ex: "the property may not be conveyed and any attempt shall be void.") Disabling restraints are ALWAYS invalid. The power to transfer is fundamental in property.

Equitable Life Estate

A life estate in property that is held in trust. Used often because it separates legal and equitable titles. In a trust, the trustee/holder owns the legal fee simple in the trust assets, and manages assets as a fiduciary for beneficiaries. The life tenant (beneficiaries) holds an equitable life estate, and is entitled to all the income from the trust assets. Ex. O conveys Greenacre to T in trust for the use of B for life, then to C" T is the trustee who is given fee simple to Greenacre... B (equitable life estate holder) & C (holder of equitable remainder) are both beneficiaries.

Transfer by Deed

A living person may transfer real property by a deed. The completed transfer is called a conveyance or a grant. The verbs used to describe the transfer are convey or grant. The person who makes the transfer is the grantor, while the recipient is the grantee.

Promissory Restraint on Alienation

A restraint that stipulates that the transferee promises not to separately transfer her interest. Ex. O conveys "to B, and B promises that she will not sell the estate."

Cole v. Steinlauf Rule/Considerations

A) Sum: seller & buyer contracted for sale of home. Seller could not provide clear title. B) Issue: Under CT law, does a deed for real property convey marketable title if it does not expressly state that the title runs to the Grantee/their heirs. C) RULE: without words of limitation that identify a specific freehold estate to which a marketable title could be held, only a life estate can be assumed. "A deed that places the burden on the purchaser of a property to prove the intent of a prior title holder is not marketable"

Metropolitan Park District v. Unknown Heirs of Rigney

After the breach of a condition subsequent, (1) the grantor's right to declare forfeiture expires if (2) he fails to exercise within a reasonable time.

Fee Simple Subject to a Condition Subsequent

An estate created in a transferee that may be terminated at the election of the transferor when a certain condition or event occurs. IF the condition does happen, this estate does not end automatically, RATHER the transferor has the power to terminate (otherwise known as right of entry) the estate by taking action. This is an election by the transferor. -Holder is transferee, and the grantor is the transferor. -In order to avoid ambiguity, it is helpful if the instrument contains a clause stating, "the transferor has the right to re-enter and reclaim the property" or words to that effect. -The future interest can only be retained by the transferor (or his heirs) through RIGHT OF ENTRY, it cannot be created in a transferee. The transferee remains bound by the condition. -The transferor can reenter the estate upon the condition by giving notice to the transferee or filing a quiet title action. Self-help (physical reentry) is not allowed anymore.

Modern Future Interest

An existing, nonpossessory property right that may become possessory in the future. Also known as remainder. -The holder has a valuable property right which generally include: (in fee simple absolute) holder can sell his future interest or use it as security for a loan. Holder can also prevent possessor from committing waste, payment if property is taken by condemnation. Upon holder's death, future interest can be transferred by devise (will) or intestate succession.

In Fee Simple Conveyance to Corp

Corps do not have heirs, so it would pass to successors/assignees.

How is an estate or future interest usually transferred?

Deed, will, or intestate succession

Remainders (Future Interests Created in a transferee)

Def: (1) are capable of becoming possessory immediately upon the expiration of the prior estate; -the possibility of possession is all that is necessary, even if the condition is not likely to occur. and (2) does not divest or cut short any interest in a prior transferee. -remainder "waits patiently" UNLESS its executory. - two types of remainders

Contingent Remainder (Future Interests Created in a transferee)

Def: If a remainder is not vested, it is contingent. Thus, it is either (1) given to an unascertainable person OR (2) subject to a condition precedent. -a contingent remainder is valid when created. BUT if it has no vested by the time the prior estate ends, the contingent remainder is destroyed. See doctrine of destructibility of contingent remainders...

Vested Remainder subject to Divestment (Future Interests Created in a transferee)

Def: remainder that is vested, but is subject to condition subsequent. Ex. Suppose O conveys "to B for life, then to D, but if D does not survive B, then to E." D is the AP. There is no CP. D's interest is ready to become possessory UNLESS a specific event occurs (D dies before B does). D's interest will be divested (otherwise called terminated) if D dies before B. D has a vested remainder subject to divestment.

Vested Remainder subject to Open (Future Interests Created in a transferee)

Def: vested remainder held by one or more living members of a group or class that may be enlarge in the future. Ex. Suppose O conveys "to B for life, then to D's children. Since D is alive, if he were to have more children his currently (1) ascertainable children ((2) with no other CP) would have to share the property with unascertainable child (unborn). The current ascertainable child have a vested remainder subject to partial divestment.

Restraints on Alienation (3)

Disabling, forfeiture, and promissory restraint.

Fee Simple Absolute

Dominant estate. Potentially Infinite. 3 Variants (jointly called simple defeasible): Fee simple determinable, Fee simple subject to a condition subsequent, & fee simple subject to an executory limitation.

Fee Tail

Duration is determined by the lives of the linear descendants. By conveying a fee tail, an owner could keep land within the family for generations. Common forms are eldest son to eldest son until bloodline ends. -Fee tail is nearly extinct today, can ONLY be created in Delaware, Maine, Massachusetts, & Rhode Islands. -Holder is called "grantee", conveyor is "grantor". -The conveyor retains a reversion, which will become possessory if the holder's line of lineal descendants expires. reversion would be to conveyor, conveyor's assignee, devisee, or heir would receive a fee simple. -Grantee has present interest/possession in property for the duration of his life. There is a limited right to transfer during the grantee's own lifetime.

Future interest created in a transferee must be...

Either a remainder OR executory interest. So, if you encounter a future interest created in a transferee that is not a remainder, it must be an executory interest, vice versa.

Fee Simple Subject to an Executory Limitation (also called a fee simple on executory limitation)

Estate created in a transferee that is followed by a future interest in another transferee (a third party). -same words of duration that used to created FSD & FSSTCS (so long as, while, during, until, provided that, but if, on condition that), the distinguishing interest is where the future interest is held, which is by a transferee, and not retained by transferor. -Holder is transferee, and the grantor is the transferor. - future interest in this estate is called executory interest. future interest becomes possessory upon the happening of some condition or event.

What is a "defeasible" estate?

Estate subject to something happening or not happening AND may end upon occurrence of that something/future event.

Fee Simple Determinable

Estate that automatically ends when a certain event or condition occurs, giving the right of possession to the transferor. Duration can be potentially infinite duration of the fee simple will be cut short if the event/condition happens. -Holder is transferee, and the grantor is the transferor. -The transferor retains future interest through a possibility of reverter, which automatically becomes a fee simple absolute when the event condition occurs. -The present interest is with the holder. The durational condition applies to any transferee.

Types of Modern Freehold Estates

Fee Simple Absolute (three variants), Life Estate, Fee Tail, Fee Simple Determinable, Fee Simple subject to a condition subsequent, & Fee Simple subject to an executory limitation.

Executory Interest (Future Interests Created in a transferee)

Future interest in a transferee that must divest another estate or interest to become possessory. In other words, the exact opposite of remainder -TWO types depending on whether it follows transferor or transferee.

Future estates are divided into which two groups? (according to identity of the holder)

Future interests retained by transferor (3) & future interests created in a transferee (5)

O convey's "to G for 75 years"... Reversion, Possibility of Reverter, or Right of Entry?

G's estate is a term of years because it has a fixed duration established in advance. Because O carved our a smaller vested estate (term of years) from his larger estate (fee simple absolute), he retains a reversion, which will become possessory in 75 years, when the term of years ends.

Life Estate

Holder is called a "life tenant". Duration is measured by lifetime of "a particular person". When future interest is taken back its called Reversion ("reverts"). When the future interest is conveyed to a third party after the life estate ends, it is called a remainder interest.

Transfer by intestate succession

If a person dies without a will, their property will be distributed according to state statutes, usually closest living relative. Completed transfer is called intestate succession. Verbs used to described the transfer is descend. Receipt is the heir. Different terms apply to personal property transferred by intestate succession.

What is escheat?

If the decedent has no spouse or living relatives, the property goes to escheat (the state). In other words, land returns to the state that governs it.

Who is a decedent's parent's and their issue?

If there are no issues and surviving spouse... the property will be distributed to parents > if no living parents > between the issue(s) of parents. Otherwise known as decedent's: grandparents, siblings, half-siblings, adopted siblings.

Who is decedent's ancestor and collaterals?

If there is no spouse, linear children, parents or their issues., the property will go to (a) any surviving ancestor(s) and/or (b) any other collateral(s) (blood relative(s)). Equitable division btw a/b. In other words: great-grandparents, aunts/uncles, cousins, their linear children.

Doctrine of Waste

Imposes a duty on the life tenet to use the property in a manner that does not significantly injure the rights of the future interest holders.

What is intestate succession?

Intestate succession is the statutory method of distributing assets that are not disposed of by will.

If x dies intestate, the state will distribute her property as follows

Issue and surviving spouse > Parents and their issue > ancestors and collaterals > Escheat

Who is a decedent's issue and surviving spouse?

Issues are "liner" children. Otherwise known as: children, legally adopted children, grandchildren, etc. If decedent has both surviving spouse and issue, the state will typically apply equitable division btw parties. If there is a spouse and multiple issues, the issues will split one-half, and the spouse will again get one-half. If no spouse, entirety goes to issue(s).

Two types of Life Estates

Legal/ordinary estate & equitable life estate.

Name the four basic possessory estate by order of their quantum(potential duration), from longest to shortest....

Longest fee simple, fee tail, life estate, leasehold (term of years) Shortest

Four Doctrines creates to further Marketability

Makes land more marketable by placing all interests in the hands of living, ascertainable individuals: -Rule on shelly's case -Doctrine of Worthier Title Increases marketability by imposing time limits on when the uncertain future interest ends: -Doctrine of Destructibility of Contingent Remainders -Rule Against Perpetuities

Who is the next of kin?

Persons who receive personal property by intestate succession.

Legal Life Estate (also known as "ordinary life estate")

Rarely created contemporaneously bc life estate (people's lives) ends unexpectedly, most financial institutes will not make a loan against that uncertainty.

Ameliorative Waste

Results from an affirmative act that leads to a substantial change in the property, and increases its value. A life tenant must not engage in acts that will enhance the property's value UNLESS all future interest holders are KNOWN and CONSENT. (I.e. building a swimming pool)

What are the two types of executory interest? & What are they? (Future Interests Created in a transferee)

Springing Executory Interest IF the interest follows the transferor. Ex. O conveys Greenacre "to B for life, then one year after B's death, to D and his heirs." Once B's life estate ends, O regains a fee simple. One year later, O's estate is divested, and D's future interest becomes possessory. Otherwise, O would have a potentially infinite fee simple. Accordingly, D has a springing executory interest, not a remainder, IN OTHER WORDS, D's interest is not capable of becoming possessory at the expiration of B's life estate. Shifting Executory Interest IF the interest follows the transferee. Ex. O conveys Greenacre "to B and her heirs until humans land on Mars, then to D and his heirs." B has a fee simple subject to an executory limitation. D has a shifting executory interest. D's possession immediately follows the end of B's estate and D can do nothing to cut B's estate short, SO B's interest is not divested by D.

Woodrick v. Wood

The court found that an injunction was an available remedy to prevent an action of waste and that waste was an abuse or destructive use of property. Issue: whether the holder of a remainder interest in a parcel of land may prohibit the life tenant (stephmom) of such property from destroying structures on the land. Holding: even though tearing down the rotting barn results in gross waste, it does not result in net waste because removing the barn actually increases the value of the property overall. The court accepts the lower court's decision to award the value of the barn to Patricia as fair to both parties. Rational: Removal of the barn would actually improve the value of the property, so its removal did not constitute waste. Paying the value of the barn to the remainderman would compensate her for its removal and did not justify waste, since the removal of the barn was not a waste of the property.

Mahrenholz v. County Board of School Trustees

The deed language granting land for an ambiguous purpose & otherwise reverting the land to the grantor does create a fee simple absolute determinable, followed by possibility of reverter.

O convey's "to G and her heirs, but if alcohol is ever sold on the land, then O shall have the right to re-enter and retake the estate"... Reversion, Possibility of Reverter, or Right of Entry?

The phrase "but if" indicates that G's fee simple estate is subject to a condition subsequent, so G holds a fee simple subject to a condition subsequent. Notice the express words of re-entry in the conveyance that also show O's intent to create this estate. Accordingly, O's future interest is a right of entry.

O Conveys "to G and her heirs so long as alcohol is not sold on the land"... Reversion, Possibility of Reverter, or Right of Entry?

The phrase "so long as" indicated that G's fee simple estate endures only for a period of time and will automatically end upon the occurrence of the specified event: the sale of alcohol. Accordingly, G holds a fee simple determinable. So, by definition O's future interest is a possibility of reverter.

What is vesting?

The point when the title uncertainty is removed.

Transfer by Will

The property of a decedent may be transferred by a will. The completed transfer of real property is called a devise. The verb used to describe this transfer is also devise. The person whose will contains the devise is the testator if male or testatrix if female, while the recipient is the devisee. Different terms apply to the transfer of personal property by will.

Modern Freehold Estates (Definition)

To be considered freehold, an estate must be immobile, for an indeterminable duration. The owner of a present estate has the right to currently possess the property. They are characterized by how long they exist.

Jee v. Audley Rule

Under the rule against perpetuities, a bequest does not vest after a life or lives in being at the time of the testator's death plus 21 years.

What are the two types of remainder? (Future Interests Created in a transferee)

Vested remainder (3 different types) & contingent remainder. Note: vested is seen as more substantial than contingent.

Voluntary Waste

Voluntary waste is any affirmative action beyond the right of maintenance that causes harm to the premises. Any change of use is voluntary waste for which the life tenant may be liable to holder of future interest. (I.e demolishing a valuable house)

Words of Duration (also called words of condition) v Words of Limitation

W.O.D. fall under W.O.L., BUT W.O.D. (i.e. so long as) indicate length of estate. while W.O.L. identify the individual transferees.

Fee Simple Absolute (Words)

WOP: "to a" WOL: "and his heirs" This estate is presumed. Fee Simple Absolute is Freely Alienable, Devisable, & Descendible. Example phrases: "to ann and her heirs", "to an in fee simple", "to ann"

Fee Tail (Words)

WOP: "to a" WOL: "and the heirs of his body" -Disfavored. Even where allowed, language must be perfect. -Fee Tail is alienable, not devisable, descendible. Example phrases: "to ann and the heirs of her body" -May only alienate the right to possession until death. Descends only to lineal descendants.

Term of Years (Words) (also known as leasehold)

WOP: "to a" WOL: "for 20 years" -automatic, back to grantor after term. -alienable, devisable, descendible. Example phrases: "to Ann for the term of 20 years/ for 20 years" - Subject to waste doctrine.

Life Estate (Words)

WOP: "to a" WOL: "for life" Not presumed, but language need not be perfect. Life Estate is alienable, not devisable, descendible. Example phrases: "to ann for life", to ann until she dies"

Fee Simple Subject to Condition Subsequent (Words)

WOP: "to a" WOL: "provided that, but if, on condition that" -Not automatic, back to grantor. -F.S.S.C.S is alienable, devisable, descendible. Example phrases: "to ann, provided that"; "to ann, but if"; "to ann, on condition that". -When ambiguity exists, preferred over a FSDet. Not subject to waste doctrine.

Fee Simple Subject to an Executory Limitation (Words)

WOP: "to a" WOL: "so long as/while" "provided that" "but if" -Automatic, to third party. -Alienable, devisable, and descendible. Example phrases: "to Ann... as long as/while/until/during/provided that/but if/ on condition that... then to bob" -Future interest in a third party follows the estate. Not subject to waste doctrine.

Fee Simple Determinable (Words)

WOP: "to a" WOL: "so long as/while/during" -Automatic, beach to grantor. -Fee Simple Determinable is alienable, devisable, descendible. Example phrases: "to ann as long as"; "to ann while"; "to an until"; "to ann during". -Not subject to waste doctrine.

Permissive Waste

Waste caused by neglect toward the property, which causes a decrease in value (I.e. failing to make minor repairs or to pay property taxes)

Process of Identification RAP

When analyzing a deed/will that includes future interests subject to the rule, evaluate the application of the rule separately for EACH interest. (step 1) identify the contingent interest (step 2) list the lives in being (step 3) kill of the lives in being at some future date and add 21 years (step 4) ask yourself, "is there any possibility thate contingent interst will vest after this point? If yes, void; if not, valid.

Life Estate our autre vie

When the life estate is conveyed for ANOTHER'S life time.

Holographic Will

Will written entirely in the handwriting of the decedent and signed by same. Although H.W.'s do not follow strict formalities, accepted 50/50.

Revocable Trust

a trust which takes effect during the owner's life time, AND whose terms the trustor retains the rights to change

Attested Will

a written will signed by at least two witnesses, and generally combines testamentary trust OR revocable trust. Generally also drafted by an attorney, therefore called "attorney-drafted attested will".

Fee Simple Defeasible is...

an umbrella term for a defeasible estate that may end upon the occurrence of some future event (refers to 3 types: fee simple determinable, fee simple subject to a condition, & fee simple subject to an executory limitation). NOTE it is also possible to create other defeasible forms of other basic estates, such as a life estate determinable or a term of years subject to a condition subsequent. -Often used to make gifts of land to public entities or chartiable institutions. A grantor may want to transfer ownership rights only for a specific purpose, and if the property is not used as intended the grantor can have the property returned.

Alienable

can be sold or given away during lifetime

Descendible

can be transferred by intestate succession

Devisable

can be transferred by will at death

Testamentary Trust

is a trust created by a will. It only comes into use when the person making the will dies.

At common law.. the right of entry and possibility of reverter could be transferred...

only through intestate succession to the holder's heirs, and was traditionally restricted due to the concern that they impaired marketability. BUT today, both are freely alienable, devisable, and descendible in almost all jurisdiction.

Imagination in Rule of Perpetuities...

otherwise known as the "what-might-happen" approach. ...is demanded to imagine a world of possibilities that might arise in the future and affect vesting. If you can conceive of just ONE situation where the interests vests outside of the perpetuities period, the interest is void.

Who are heirs?

persons who receive real property under laws of intestate succession. A living person does not have heirs, only heir apparent.

Forfeiture Restraint

provides that if the grantee attempts to separately transfer his interest, it is forfeited to that other person. Ex. O conveys "to B, but if Bever tries to sell the estate, then to D"

Words of Purchase

the part of a conveyance that identifies the grantee

Words of Limitation

the part of a conveyance that identifies the nature of the estate conveyed.