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12 Cards in this Set
- Front
- Back
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What are the types of Future Interests?
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A. Vested remainder - Indefeasibly VR, VR subject to total divestment, VR subject to open
B. Contingent remainder C. Executory interest |
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Vested means...
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Both created in an ascertained person AND is not subject to a condition precedent
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Indefeasibly Vested Remainder
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"To A for life, remainder to B"
The holder of this remainder is certain to acquire an estate in the future with no conditions attached. |
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Vested Remainder Subject to Total Divestment
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"To A for life, remainder to B, provided however, that if B dies under the age of 25, to C."
The remainder man exists and his right to possession could be cut short because of a condition subsequent |
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Vested Remainder Subject to Open
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"To A for life, then to B's children." (A is alive and B has 2 children)
Remainder is vested in a group of takers where at least one is qualified to take. A class closes whenever any member can demand possession. |
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Contingent Remainder means...
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Created in an unascertained person OR is subject to a condition precedent
A condition precedent must be satisfied before the remainderman has a right to possession. |
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Condition Precedent vs. Condition Subsequent
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O conveys "to A for life, then to B and his heirs IF B marries C." (B's remainder is contingent because he must marry C before he can take possession.
O conveys "to A for life, then to B and his heirs if B marries C, otherwise to D and his heirs." B&D = Alt CR |
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Condition Precedent vs. Condition Subsequent
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Compare the previous examples to:
O conveys "to A for life, then to B and his heirs; but if B marries C, then to D and his heirs." (B has a vested remainder subject to divestment by D's executory interest...because there is no cone precedent) |
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Rule of Destructibility
Contingent remainders are destroyed if not vested at time of termination of preceding estate |
"To A for life, remainder to A's children who reach 21"
If A has no children @ 21, reverts to grantor. Abolished in most states Modern Result: Property reverts to grantor; A's children have a springing executory interest |
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Rule in Shelley's Case
(Rule Against Remainders in Grantee's Heirs) A remainder in a life tenant-grantee's heirs is deemed to be in the life tenant herself |
"To A for life, then to A's heirs."
A has a fee simple Abolished in most states Modern Result: A's heirs have a contingent remainder |
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Doctrine of Worthier Title
(Rule Against Remainders in Grantor's Heirs) A remainder in the grantor's heirs is ineffective, so grantor has a reversion |
"To A for life, then to my heirs at law."
A has a life estate; grantor has a reversion. Generally treated as rule of construction. Modern result: Grantor's heirs have a contingent remainder. |
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Executory Interest is...
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Future interest created in a 3rd party, which is not a remainder (defeasible fees)
Shifting = "To A, but if A uses the land for nonresidential purpose, then to B" Springing = O conveys "To A, if and when she marries" |
