Estates Flashcards
(22 cards)
What is a Fee Simple Absolute?
The largest estate with no conditions or limitations. The owner has complete control and can transfer it freely.
Created by: “To A” or “To A and his heirs.” Duration: Forever.
What is a Fee Simple Determinable (FSD)?
Automatically ends upon a stated event, and property reverts to the grantor.
Created by: “To A so long as, while, until, or during [condition].” Future Interest: Possibility of Reverter (held by the grantor).
What does the Future Interest ‘Possibility of Reverter’ refer to?
Automatically returns the property to the grantor if a fee simple determinable condition is broken.
What is a Fee Simple Subject to Condition Subsequent (FSSCS)?
Grantor has the right to re-enter if a condition occurs but must take action to reclaim.
Created by: “To A, but if [condition] occurs, the grantor reserves the right to re-enter.” Future Interest: Right of Entry.
What is a Fee Simple Subject to Executory Limitation (FSSEL)?
Automatically shifts to a third party when a condition occurs.
Created by: “To A, but if [condition] occurs, then to B.” Future Interest: Executory Interest (held by a third party).
Define a Life Estate.
An estate measured by a person’s lifetime and ends at death.
Created by: “To A for life.” Future Interest: Reversion (to grantor) or Remainder (to third party).
What is a Reversion in terms of future interests?
A future interest held by the grantor when a lesser estate (e.g., life estate) ends.
What is a Vested Remainder?
Given to an ascertainable person, not subject to a condition precedent.
What is a Contingent Remainder?
Given to an unborn/unascertainable person or subject to a condition precedent.
What is the Rule Against Perpetuities (RAP)?
A future interest must vest, if at all, within 21 years after a life in being at the time of the grant.
What are the four unities required for Joint Tenancy (JT)?
- Time
- Title
- Interest
- Possession
What is Tenancy in Common (TIC)?
Default co-ownership type where each co-tenant has a separate, undivided interest with no right of survivorship.
What is a Tenancy for Years?
A lease for a fixed term that automatically ends.
What is an Implied Warranty of Habitability?
Residential landlords must provide livable premises. Tenants may:
* Withhold rent
* Repair and deduct costs
* Move out
* Sue for damages.
What happens in a situation of Constructive Eviction?
If the landlord substantially interferes with habitability, tenant may terminate lease and vacate.
How is the spouse’s share determined if there are children?
Spouse gets ½ or ⅓, remainder goes to children.
What is the difference between Per Stirpes and Per Capita?
- Per Stirpes – Descendants take by representation of a deceased ancestor.
- Per Capita – All surviving heirs receive equal shares at each generational level.
What is the purpose of the Probate Process?
Validates the will (or applies intestacy laws), pays debts and taxes, distributes remaining assets.
What are Non-Probate Assets?
- Joint tenancy property (right of survivorship)
- Life insurance policies
- Retirement accounts (401(k), IRA)
- Revocable trusts
What is a Revocable Trust?
Settlor retains the right to modify or revoke the trust.
What is a Spendthrift Trust?
Restricts a beneficiary’s ability to transfer or pledge trust assets to creditors.
True or False: An Irrevocable Trust can be revoked after creation.
False
