Future Interest Flashcards
What are the “magic words” for FSA?
“O to A”
“O to A and his heirs”
“O to A in fee simple”
What are the “magic words” for Fee Simple Defeasible (FSD)?
“So long as”
“Unless (remember MBMBAM!)”
“during”
What are the “magic words” for Fee Simple Subject to Condition Subsequent (FSSCS)?
“But if”
“On condition”
“Provided that”
“O shall have a right of re-entry”
What are the “magic words” for Fee Simple Subject to Executory Limitation (FSSEL)?
“O to A BUT if used as a farm, then to B” (SHIFTING)
“O to A in 5 years” (SPRINGING)
What are the “magic words” for Life Estates (LE)?
“For life”
What future interests exist in a Life Estate?
Grantor = Reversion
Third Party = Remainder
If the life estate names eg A’s children instead of a third party, it just gets read as a normal FSA
What is an example of a Life Estate pour autrie vie?
O to A for the life of B
O to A for the life of President Reagan
What two scenarios create a Contingent Remainder in a Life Estate?
- A class of people entitled to the REMAINDER but not known at the outset of the conveyance - “O to A for life then to the children of B” (when B has no children; if B has one or more children it’s a vested remainder subject to open)
- A REMAINDER that only takes effect UPON happening of a CONDITION - eg “O to A for life, then to B if B has earned a college degree”
What are the three types of Vested Remainders in Life Estates?
- Vested Remainder subject to open (condition is met/class has at least one member but class may change in the future)
- Vested Remainder Subject to divestment (may be lost due to an event occurring after initial conveyance)
- Absolute vested remainder - not subject to change, no other future interest
What is a “Vested Remainder” in a Life Estate?
Remainders to persons who are IDENTIFIABLE at the time of the initial conveyance and for whom NO CONDITIONS need occur before the future interest becomes possessory OTHER THAN the death of the estateholder
What happens under traditional rules to a destructible Life Estate if interest has NOT vested by the end of the original Life Estate?
O gets reversion FSA
What happens under INDESTRUCTIBLE rule to a Life Estate if interest has NOT vested by the end of the original Life Estate?
O gets a reversion in FSSEL (springing), and if the condition is subsequently met, third party inherits, otherwise; if condition is foreclosed, O then gets FSA
What is the Doctrine of Worthier Title?
Common-law rule applicable in some states which says that any purported remainder interest of O’s heirs is actually a REVERSION interest of O.
Ex: “O to A for life, remainder in the heirs of O” = A has a LE, O has reversion
What is the Rule in Shelley’s Case?
Just read a LE naming A’s heirs as the third party as a regular ol’ FSA.
What is the RAP?
Rule Against Perpetuities - No interest is good unless it must vest, if at all, no later than 21 years after the death of some life in being at the creation of the interest.
