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43 Cards in this Set
- Front
- Back
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Define: EXECUTORY INTERESTS [from the BOOK]
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"Executory interests: An executory interest is a future interest in a transferee that must, in order to become possessory:(1) Divest or cut short some interests in another transferee (this is known as a shifting executory interest), or (2) Divest the transferor in the future (this is known as a springing executory interest)
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Describe: DESTRUCTIBILITY OF CONTINGENT REMAINDERS [BOOK definition]
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Destructibility of contingent remainders: A remainder in land is destroyed if it does not vest at or before the termination of the preceding freehold estate
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Define: DOCTRINE OF WORTHIER TITLE [from the BOOK]
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Doctrine of worthier title: Where there is an inter vivos conveyance of land by a grantor to a person, with a limitation over tto the grantor’s own heirs either by way of remainder or exectuory interest, no future interest in the heirs is created; rather, a version is granted by the grantor. This is enforced now only in a minority.
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Define: RULE AGAINST PERPETUITIES (RAP) [from the BOOK]
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The rule against perpetuities: No interest is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest. You must prove that a contingent interest is certain to vest or terminate no later than 21 years after the death of some person alive at the creation of the interest. If you cannot prove that, then the contingent interest is void from the outset. If there is no person among this group of relevant lives by whom the requisite proof can be made, the interest is void unless it must vest or fail within 21 years.
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How does the RAP apply to CLASS GIFTS? [book]
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RAP, Class gifts: if a gift to one member of the class might vest too remotely, the whole class gift is void.
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Which FIs are not subject to the RAP? [book]
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Future interests retained by the transferor—reversions, possibilities of reverter, and rights of entry – are not subject to the Rule Against Perpetuities. They are vested as soon as they arise.
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Which FIs are subject to the RAP? [book]
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Only three interests are subject to the Rule against perpetuities: Contingent remainders, executory interests, and class gifts.
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Define: DEFEASIBLE FEE SIMPLE [Xerox]
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The defeasible fee simple estates are subject to termination upon the happening of an event specified in the grant.
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Define: DEFEASANCE [Xerox]
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Defeasance means loss of ownership—in other words, that the holder of the possessory interest will lose that interest upon the happening of an event that is stipulated in the grant. The event stipulated is either a LIITATION or a CONDITION SUBSEQUENT.
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Define: Possessory interests subject to a LIMITATION [Xerox]
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Possessory interests subject to a limitation are understood as terminating naturally.
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Define: Possessory interests subject to a SPECIAL LIMITATION [Xerox]
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The limitation is called special limitation if it describes an event that is not certain to happen (unlike death, which happens naturally).
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What is the difference between the FEE SIMPLE DETERMINABLE and the FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT?
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Each is subject to a different kind of defeasance. The fee simple determinable is subject to special limitation, while the fee simple subject to a condition subsequent is subject to a condition subsequent.
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Define: Life Estates [Xerox]
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Life estates are estates that expire naturally (by their own terms) on the death of the measuring life
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Define: EQUITABLE LIFE ESTATE [Xerox]
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The phrase “equitable life estate” is sometimes used to describe the interest of a trust beneficiary who has the right to the income from a trust for his or her lifetime.
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What is the difference between a LIFE ESTATE SUBJECT TO A SPECIAL LIMITATION and a DETERMINABLE LIFE ESTATE?
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They are the same.
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Define: TERM OF YEARS [Xerox]
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Terms of years are estates that expire naturally (by their own terms) on the expiration of the term. Term of years are defeasible estates because they are subject to a limitation. You can make them prematurely defeasible by adding a special limitation or a condition subsequent to the grant.
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Define: ESTATE FROM PERIOD TO PERIOD [Xerox]
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An estate from period to period is “an estate which will continue for successive periods of a year, or successive periods of a fraction of a year, unless it is terminated.
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Define: ESTATE AT WILL [Xerox[
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An Estate at will is an estate which is terminable at the will of the transferor and also at the will of the transferee and which has no other designated period of duration
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Define: ESTATE AT SUFFERANCE [Xerox]
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An estate at sufferance is an interest in land which exists when a person who had a possessory interest in land by virtue of an effective conveyance, wrongfully continues in the possession of the land after the termination of such interest, but without asserting a claim to a superior title.
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Define REMAINDER [Xerox]
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A remainder is a future interest created ina transferee that becomes possessory if at all upon the natural termination of the preceding interest. The preceding interest (1) must have been created simultaneously with the creation of the future interest and (2) must be a particular estate.
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Which statute created the EXECUTORY INTEREST? [Xerox
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The Statute of uses.
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What did the COURT OF CHANCERY do? [Xerox]
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The court of chancery was known as EQUITY. They were able to render decisions that look into account the justice or fairness of the parties particular facts.
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What does a SHIFTING EI potentially divest? [Xerox]
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A shifting interest potentially divests an interest conferred by the grantor on a transferee.
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What does a SPRINGING EI potentially divest? [Xerox]
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A springing executory interest potentially divests an interest retained by the grantor.
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Can EIs become REMs? How?[Xerox]
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Yes. An executory interest can vest before becoming possessory by changing into a remainder. G transferred land “to A for life, remainder to B, but if B fails to survive A, to C. B predeceases A.
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Can C/Rs become vested remainders? How? [Xerox]
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Yes. G transferred land To A for life, remainder to B if B sruvies A, but if not, to C. B predeceases A. At B’s death, B’s contingent remainder is defeated, G’s technical reversion is divested and C’s contingent remadiner becomes an indefasilby vested remainder.
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Can REMs become E.I.s? How? [Xerox]
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Yes. G transferred land “to A for life, remainder to B if B lives to age 21. The destructibility rule has been abolished in this jurisdiction. If B is younger than 21 when A dies, B’s contingent remainder becomes an executory interest. G’s reversion takes effect in possession upon A’s death as a fee simple subject to a defeaseance in favor of B if and when B later reaches 21.
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What happens when a DEFEASIBLE FEE SIMPLE is followed by more than on NONREVERSIONARY FUTURE INTEREST, only one of which can become possessory? [Xerox]
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All the future interests are executory interests, for a reminder cannot follow a fee simple estate [When a DEFEASIBLE FEE SIMPLE is followed by more than on NONREVERSIONARY FUTURE INTEREST, only one of which can become possessory]
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What happens if the first future interest is a contingent remainder? [Xerox]
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The other nonreversionary future interests will also be contingent remainders, if the first future interest is a contingent remainder
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What happens if the first future interest is a vested remainder subject to divestment? [Xerox]
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The other nonreversionary future interests will be executory interests, if the first future interest is a vested remainder subject to divestment.
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What are the limitations of a CONTINGENT REMAINDER? [Xerox]
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A contingent remainder is either (1) subject to a condition precedent (in addition to the natural expiration of prior esates), OR (2) owned by unascertainable persons, OR BOTH
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What is a CONTINGENT REMAINDER simply (a definition of contingent remainders)? [Xerox]
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A contingent remainder is simply a remainder that cannot become a present estate until the takers are identified or until conditions precedent prescribed by the creator of the interest have been satisfied. In other words, a contingent remainder can never become a present estate unless it first becomes vested.
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How can a CONTINGET REMAINDER divest a reversion? What can it not do without losing its common law characteristics? [Xerox]
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A contingent remainder can divest a reversion by VESTING. But it cannot, without losing its common law characteristics, divest any other interest.
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Define: THE RULE OF DESTRUCTIBILITY OF CONTINGENT REMAINDERS [Xerox]
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Unless a remainder shall be vested at or before the termination of all estates prior to it in possession, it shall be destroyed.
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How universal is the destructibility rule today in JXs? [Xerox]
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The destructibility rule has been abolished in all but a few states either by specific statute or by judicial decision.
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Define: EXECUTORY INTEREST [Xerox—red book]
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An executory interest is any future interest created in a person other than the transferor that is not a remainder. Think of springing and shifting EIs. Springing deals more with time and shifting deals more with persons.
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CLUES to whether you have a CONDITION SUBSEQUENT
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• A condition subsequent is a condition subsequent because the future interest first vests in the owner and if the it is lost then there must be a later divestment, a subsequent divestment. • The likeliest clues that we are looking at for a VRSTCD followed by a ROE (less likely) or a (shifting) executory interest (more likely) are: • A grant of the piece of the timeline, a comma, a “but if” (or equivalent language), conditional language, + A ROE or An Executory interest.
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TIP to see if its language of condition that is part of the description of the taking:
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If you look at a conveyance and conclude that the condition has to be satisfied before the remainder beneficiary can go into possession, then it is usually a condition precedent.
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What kind of HEIRS does a LIVING person have?
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A living person has no heirs.
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Define: CONDITION SUBSEQUENT
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A condition subsequent is a divesting condition. It usually comes AFTER the grant. The condition takes effect AFTER vesting. The condition subsequent is a sign of a vested REM. SUBJ. to complete defeasance followed by an Ei.I. (or a R.O.I.)
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Define: CONDITION PRECEDENT
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A condition precedent is one that must be satisfied BEFORE vesting or possession is possible. It comes BEFORE the grant or is part of the description of the taker. A condtion presecedent is a signt of a contingent remainder.
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How would you deal with paired future interests in the transferees that are competing for a place on the timeline?
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If paired future interests in Transferees are competing for a place on the time line, the pairing is either (a) 2 alternative contingent remainders () plus () or (b) A VRSTCD plus an E.I. (almost always) || The 1st s F.I. you find in the conveyance is always a remainder, but the question is, “what kind? ||And once you know what the 1st one is, then you know what the 2nd one has to be.
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What happens when someone does not have SEISEN of the estate?
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Seisen snaps back to the O. Seisen must always be in someone. Once set in motion, it can keep on moving. So, if the conveyance is to A life, REM to B, O gives the seisen to A + A can pass it on to B, but if there is ever a gap, seisen snaps back to O + can’t come out unless O reconveys it.
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