Future Interests Flashcards
Future Interest Capable of Creation in the Grantor
Right of Reverter (fsd), Right of Re-Entry (fecs) Reversion (le,everything else)
Future Interest in Transferees
Vested Remainder, Contingent Remainder, Executory Interest
Vested Remainder
Created in an ascertained person NOT subject to a condition precedent
Three Types: indefeasibly vested remainder, vested remainder subject to complete defeasance, vested remainder subject to open.
Indefeasibly Vested Remainder
Holder is certain to acquire estate in the future WITH NO STRING ATTACHED
COMMON LAW: Future interest may pass by will or intestacy
Vested Remainder Subject to Total Divestment/Complete Defeasance
Right to possession could be cut short by CONDITION SUBSEQUENT
Vested Remainder Subject to Open
Remainder is vested in a group/class of people, at least one of who qualified to take.
Each class member’s share is subject to partial diminution because additional takers can join.
Rule of Connivence
Classes closes whenever a member can demand possession
Womb Rule
A child in the womb at the time of death takes with fellow class members .
Contingent Remainder
Created in an unascertained person OR subject to a condition precedent
Rule of Destructionability of Contingent Remainders
Common Law: Contingent remainders were destroy if still contingent at the time the preceding estate ended.
Example (Condition requires person be at least 21, at time of death of preceding estate person was 20.)
Modernly: Rule has been abolished, and instead the heirs hold title subject to a springing executory interest
Rule in Shelley’s Case
Common Law: If life estate conveyed with remainder to life tenants heirs, the present estate and future interest would merge creating a FSA.
This was a rule of law, not construction and would apply despite grantor’s intent
Modernly: This has been abolished
Doctrine of Worthier Title
Example: O to A for life, remainder in O’s heirs (O is alive)
Doctrine voids contingent remainder in O’s heirs and give O reversion.
Doctrine is not a rule of law, and if grantor clearly intends to creat contingent remainder in heirs, that intent is binding
Executory Interest
Future interest created in transfer to 3rd party, which is not a remainder and which takes effect by cutting short some interest in another person (shifting) OR in the grantor and his heirs (springing)
