Estates

Front 1

Life Estate

Back 1

Estate fo' life!

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Fee Simple

Back 2

An interest in land. Land owned in fee simple is owned completely. Can be absolute or defeasible

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Fee Simple absolute

Back 3

Land is free from conditions, complete ownership

Can be a life estate

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Fee simple Defeasible

Back 4

itwill/can terminate upon occurrence of some specified future event.

THREE TYPES:

Fee simple determinable (FSD)

Fee Simple subject to condition subsequent (FS/CS)

Fee simple subject to executory limitation (FS/EL)

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Fee simple determinable

Back 5

Durational Language

it will end automatically when a stated eventhappens…always accompanied by a future interest – rightof reverter

will go back to grantor

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Feesimple subject to condition subsequent (FS/CS)

Back 6

Non-Durational Language

Doesn’t automatically terminate but MAY be cutshort

Unless and until entry is made, the fee simplecontinues·

Future interest = “right of entry”

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Feesimple subject to executory limitation (FS/EL)

Back 7

property is transferred to someone else

futureinterest is an executory interest

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Future Interest

Back 8

-Future rightto possession of land.

-May be conditioned upon occurrence of a conditionor event. Can also be unconditional.

-Created atthe formation of a defeasible estate.

-Will eithertake effect following the natural termination of the prior estate, or will cutshort the prior estate.

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Future Interests Retained in a Transferor

Back 9

Interests in a transferor:

1. Reversion

2. Possibility of reverter (FSD)

3. Right to entry (FS/CS)

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Future Interests Created in a Transferee

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Interests created in a transferee:

1. Vested remainder

2. Contingent remainder

3. Executory interest

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Reversion

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Created when grantor conveys an estate smaller than the estate she holds. Grantor doesn't have to reserve her future interest expressly.

Right to future possession. remains vested in transferor. May or may not becomepossessory in the future

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Possibility of Reverter

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When an estate will return to the grantor if a condition is violated. The possibility of reverter can only follow a fee simple determinable.

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Right of Entry

Back 13

A grantor's power to retake property from a grantee in the case of a fee simple subject to condition subsequent (FS/CS).

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Remainder

Back 14

A future interest that waits politely until the termination of the precedingpossessory estate

Can be:

1) Contingent

2) Vested

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Vested Remainder

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Vested if:

1. Given to anascertained person and

2. Not subjectto a condition precedent

No precedentcondition to be met for VR to become possessory other than the expiration of thepreceding estate(s).

Subject to open/partialdivestment if later-born children are entitled to share in the giftl g1PR6

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Contingent Remainder

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Contingentif:

1. Given to anunascertained person, or

2. Madecontingent upon some event occurring other than natural termination

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Executory Interest

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Divests orcuts short the preceding interest (unlike remainders) ... not natural termination

Executory Interest must:

1. Divest/cut short some interest in anothertransferee (shifting executory interest) or

2. Divest the transferor in the future (springingexecutory interest)

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Alternative contingent remainders

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"To A for life, then to B andher heirs if B marries C, but if B does not marry C, toD and his heirs."

B and D have alternative contingent remainders

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Rule against perpetuities

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“No interest is good unless it must vest, if at all, not later than twenty-one years after the death of some life in being at the creation of the interest.”

NO UNCERTAINTY

Applies to: