Limits on Inheritance: Vesting Contingent Interests Flashcards
Vesting contingent interests
Most important thing for determining who retains control of a piece of property for purposes to passing on
To vest means
If it is vested it is yours to do with what you want after you die provided you don’t put a condition on it that is void
2 types of vesting
1) Vested in possession
2) Vested in interest
Vested in possession
Have it in your hands- yours right now to use
Vested in interest
- Have a vested interest but you don’t have immediate physical possession, but you will.
- Guaranteed to happen, if you die it goes to your estate (even if you die before scheduled to receive it)
What are two things that don’t have contingent remainder interests?
Passage of time and death- these are certainties not conditions
Vesting and contingent interests
A contingent interest is not vested. Conditional upon something happening. Only vested when condition is fulfilled. Not always them that has to fulfill it.
What kind of conditions are contingent interests
Condition precedent
Does condition move to heirs?
No
Gift overs
Gifts to beneficiaries as back ups incase the first one fails
Court preference
Preference for vesting and for early vesting at that. Preference for condition subsequent (can lop off the condition)
Re Smith
Facts: T made gift to A for life, w/ remainder to A’s children. Will stipulated that if any of A’s children died, leaving children of their own, there was a gift over of that share to the deceased’s children. 2 children survived T but not A.
Ratio: Applied preference for early vesting—chose the earlier vesting date of everyones interest vesting at will date of testator, all children had vesting interest—the 2 that died before the estate took a share when she died.
