Future Interests 1 Flashcards
(27 cards)
FSA ESTATE:
LANGUAGE
DURATION
TRANSFERABILITY
FI
lang.: “2A (& his heirs)”
duration: Abs. ownership.
Pot. infinite duration
Transferabil.: Yes. Transf. inter vivos, devisable, descendible.
FI: “Heirs” /O have: Nothing!
Fee Tail, FT (Abolished) ESTATE LANGUAGE DURATION TRANSFERABILITY FI
1) lang.: “2A & heirs of his body”
2) duration: Lasts while G’ee has LINEAL BLOOD desc. ML: Creates FSA !
3) transferabil.: Does NOT AUTOM. pass to G’ee’s lineal descendants.
4) FI: G’or: REVERSION.
3P: REMAINDER
(b/c estate terminates naturally)
[To Detlef, AS LONG AS the premises are used for church purposes.]
***FS Determin. (FSD) is an estate that:
AUTOM. TERMIN. (reverts) in favor of G’or upon the happening of a stated EVENT.
2) FSD requires clear DURATIONAL language
{2A as long as /While /Until}
3) FI in G’or: “Possib.” of Reverter
(=PoR =Autom. Reversion)
FI in 3P: EI
***FS Subject to a Condition (FSsCS) SUBSEQUENT is created if:
{2A, BUT IF [alcohol is sold on the premises], then G’or has the right of re-ENTRY}
G’or EXPRESSLY RETAINS the power to terminate G’ee’s estate upon a stated EVENT.
=BUT G’ee’s Estate Continues until G’or exercises his PowerofTermin. (=Right of ENTRY for condition broken =FI. Cf. FI in 3P: EI)
by SUING/making REentry.
[=NEVER autom.]
3) Clear CONDITIONAL lang.
*FSSubj. 2 Ex. Limitation ends when: +FI:
[2A & his heirs, BUT IF A marries X, then to B.]
vs.
[“2A, IF & when he becomes a lawyer.” A is in high school].
RAP!
an EVENT triggers AUTOM. passing to a 3P !
Transf.:…subj. to condition
FI: EI (See)
A Life Estate …:
{2 Vie for life /
/For the life of Otto}
1) autom. reverts at the DEATH of T’ee or AUTRE VIE.
2) transferabil.: Yes. Alienable …if AV /Measuring life alive
3) FI: G’or: Reversion /
3P: VR
[LT is NEVER measured in years.]
**Defeasible Fees (FSD, FSsCS, FSsEL) =present possessory estates.
2 rules of Construction +2CA:
GR: U CanNOT convey MORE than U have.
{“Any attempt to alienate Backacre forfeits G’ee’s interest”}
1)*Clear DURAT./CONDIT. LANG. CA: Words of Desire-Hope-INT ["to be used4"] (Cts disfavor:) 2) Absol.RESTR. on ALIEN.=VOID =>STRIKE Cond.=>FSA results CA1: REAS. time /LIMITED PURP. CA2: MERE restriction ON USE /G'or's Right of 1st REFUSAL [/Mere K. restraint [Non-Ass. clause] => b/c NO effect on title. CCA: "G'ee's heirs" rights=>RAP]
Life Estate: LT RIGHTs & duties vs. REMAINDERMAN:
Ordinary USES & PROFITS. CA: LT must 1) make ORDIN. REPAIRS 2) pay TAX & MGT INTEREST IFF: INCOME /PROFITS from the land. If NO income, but LT OCCUPIES it: pay to the extent of the FRV. Cf: REMAINDERMAN: 1) resp. for PRINCIPAL 2) & MAJOR repairs.
GR: LT canNOT commit WASTE
(=harm FI holder,
[=> even Contingent Remainderman can enjoin the LT from committing waste].
But LT can ALTER Pr if …:
1) it does NOT diminish the FMV & Remainderman doesNOT OBJECT, or
2) CHANGED NEIGHB. CONDITIONS made the Pr RELATIVELY WORTHLESS.
[Cf.: Subst. changes: also terminate an Equit. Servit.]
[LT exploits nat. resources.]
Doctrine of Waste: LIST
Voluntary/Affirm. waste
Permiss. waste
Ameliorative waste
Voluntary/Affirm. waste +NAT. RESOURCES +CA:
LT’s INT act decreases Pr value.
NAT. RESOURCES:
GR: LT canNOT Exploit
[Timber, Oil, Minerals].
CA: P u R G E: LT may exploit if:
1) PRIOR Use: LT continues existing exploit. /land use (=Open Mines exc.)
CA: Can’t add NEW Mines.
2) Repairs: using for REAS. REPAIRS & MAINT.
3) GRANT: express 2 exploit.
4) Exploitation: Land is SUITABLE ONLY for EXPLOITATION [Quarry].
PERMISSIVE Waste
(=Neglect )
DISREPAIR reduces the Pr’s value b/c the LT “negligently” fails to MAINTAIN the Pr
(or Make ordinary REPAIRS).
AMELIORATIVE Waste
if LT makes changes w/o the FI holder’s (REMAINDERMAN’s) CONSENT that increase the Pr’s value.
- FI created in G’or: LIST
a. Possib. of Reverter
b. Reversion
c. Right of Entry
All 3 G’or interests => No RAP!!
Reversion is
the RESIDUE left in a G’or who transfers less than he has.
(AUTOM. arises. Cf: FSsCS
=optional =PoT)
Vested ! => NO RAP issue !
[2A for life=> O has Reversion]
FI created in a Transferee [LIST]:
[Note FI are Alienable BEFORE becoming possessory]
1) Remainders (Cf.: G’or=Reversion)
a) VESTED R
b) CONTINGENT R
2) Executory Interest
Cf: FSD /FScCS /LE are NOT ! FI’s
**GR: Remainders are Vested or Contingent, and become possessory by 3P:
(if at all) FOLLOWING the NATURAL expiration of a PRIOR estate [=99% LE !!] & NEVER DIVEST s.o.’s interest.
[=Tom Hanks. CA: EI: cuts short EARLY =Arnold]
–RAP applies only to CR !
VESTED Remainder is a FI if …:
(+List)
(NO RAP!)
{2 Wes for life, remainder to Assi}
the person taking is 1) ASCERTAINED [CA: firstborn] 2) & there's NO COND. PRECEDENT to his taking [Else: it's a CR.] [ VR LIST: 1. INDEFEASibly VR 2. VR subj. 2COMPLETE DEFEASance 3. VR subj. to OPEN (=VR subj. to PARTIAL Defeasance) ]
INDEFEASibly VR
[“To A for life,
remainder to B.”
+A&B are alive].
holder [here B] is CERTAIN TO ACQUIRE an estate in the future
w/ NO CONDITIONS attached.
VR subj. to COMPLETE DEFEASance:
[=VR subj. to TOTAL Divestment]
[“2A for life, remainder to B, but if B dies under age 25, then to C.” A=alive, B=20 yrs old.]
[Remainderman does NOT take SUBJECT to any condition PRECEDENT, BUT]
the right to possession may be CUT short b/c of a cond. SUBSEQUENT.
VR subj. to OPEN. VR in a class requires: +CA:
(=VR subj. 2PARTIAL divestment)
{2Vie for life, then 2 Klaus’s children.”
Vie =alive, Klaus has children Giff & Diver}.
AT LEAST 1 Vested Member
[else =CR !!].
Members’ shares subj. to partial divestment by add’l TAKERS.
GR: Class CLOSES if: ALL members are ID’d [parent dies].
CA: Rule of CONVENIENCE: CLOSES the class when ANY member can DEMAND POSS.
(=> avoids RAP)
CCA: **WOMB Rule: Child in Gestation is incl. IN the class.
GR: CONTINGENT Remainder is a possessory FI ...: [+subj. to the RAP !]. {2B for Life, remainder to C, IF he pays $100}
1) subj. to a COND. PRECEDENT
OR
2) the Holder is UNascertained [UNborn]
RAP Rule:
[RAP invalidates the Right of 1st REFUSAL which might not be exercised w/in the period of the rule.]
(contingent) FI is void if there is a remote possibility that it could vest more than 21 years after the death of a measuring life, who was alive when the conveyance was made.
[think: Unborn Widow &
STRIKE violating LANGUAGE
/invalid GIFT from conveyance]
**Executory Interest [=Subj. to the RAP!]
[2A & his heirs, BUT IF A marries X, then to B.”]
vs.
[“2A, IF & when he becomes a lawyer.” A is in high school => NOT a FSsCS!!].
[Note: Unlike Remaindermen, the 3P holder of the EI has NO STANDING to sue a LT.]
- *CUTS SHORT a prior POSSESSORY interest upon a contingent event.
1) SHIFTING EI: shifts title [FSsEL] from the G’ee to a 3P (CUTS SHORT = DIVESTS)
2) SPRINGING EI: Divests G’or’s estate [or follows a GAP in poss.] ALWAYS DIVESTS another’s interest =NOT naturally follow [Think: Arnold].