Estates and Future Interests

Question 1

Future Interest Definition

Answer 1

An existing, nonpossessory right that may become possessory in the future

Question 2

Future Interest: Remainder

Answer 2

(1) A future interest in a transferee that…
(a) Is capable of becoming possessory upon the expiration of the prior estate AND
(b) Does not divest [cut short] any interest in a prior transferee

Question 3

Future Interest: Executory Interest

Answer 3

(1) A future interest in a transferee that…

(a) MUST divest a prior estate of interest to become possessory

Question 4

Future Interests of the Transferor/Grantor

Answer 4

(1) Reversion
(2) Possibility of Reverter
(3) Right of Entry

Question 5

Future Interests of the Transferee/Grantee

Answer 5

(1) Remainder

(2) Executory Interests

Question 6

Future Interests of the Transferee/Grantee: Types of Remainders

Answer 6

(1) Vested Remainder

(a) Indefeasibly Vested Remainder
(b) Vested Remainder Subject to Divestment
(c) Vested Remainder Subject to Open

(2) Contingent Remainder

Question 7

Future Interests of the Transferee/Grantee: Definition of Vested Remainders

Answer 7

(1) Indefeasibly Vested Remainder

Certain to become possessory

(a) Ascertainable person AND
(b) No condition precedent [no strings attached]

(2) Vested Remainder Subject to Divestment

A vested remainder that can be taken away from you

(3) Vested Remainder Subject to Open

A transfer to a specific group of ppl
Only some of which need to be ascertainable

Rule of Convenience:

(a) The remainder is granted to a class that may increase in size, the court will allow the class to increase until the interest becomes possessory
(b) After which, the court will close the class when any member becomes entitled to distribution or possession

Question 8

Future Interests of the Transferee/Grantee: Definition of Contingent Remainders

Answer 8

A remainder that is either…

(1) Given to an unascertainable person; AND/OR
(2) Subject to a condition precedent

Question 9

Future Interests of the Transferee/Grantee: Types of Executory Interests

Answer 9

(1) Springing

Divests the transferor

(2) Shifting

Divests the transferee
ALWAYS follows a Defeasible Fee

Question 10

Types of Future Interests

Answer 10

(1) Reversion [Grantor]
(2) Possibility of Reverter [Grantor]
(3) Right of Entry/Power of Termination [Grantor]
(4) Vested Remainder [Grantee]
(5) Contingent Remainder [Grantee]
(6) Executory Interest [Grantee]