Future Interests Flashcards
Grantor Future Interests
(RAP can’t apply here)
- possibility of reverter
- power of termination (right of reentry)
- reversionary interest
Possibility of Reverter
Follows a determinable estate.
Creation: no special language needed, its automatic.
Transferability: (Modern, power to terminate is freely transferable, devisable, and descendable) (CL - power to terminate could descend through intestacy but could not be devised or transfered inter vivos).
Power of Termination (right of reentry)
Future interest in G’or when G’or attempts to create a FSSCS or a defeasible life estate.
Creation: must be spelled out or doesn’t exist.
Transferability (Modern - power to terminate is descendable and devisable. But not transferable inter vivos) (CL - power to terminate could descend through intestacy but couldn’t be devised or transferred inter vivos)
Reversion
A future interest retained by G’or when the G’pr transfers less than a fee interest to a TP.
- silent reversions
Transferability (Modern - freely transferable, devisable, and descendable)
(CL - could descend through intestacy, but couldn’t be devised or trasnferred inter vivos)
Grantee’s future interests
in TP, RAP applies
1. Remainder
Remainder and types
A future interest created in a TP that is intended to take effect after the natural termination of the preceeding estate.
- contingent remainder
- vested remainder
Contingent Remainder
any remainder that is not vested.
Vested Remainder
is vested at the point that it is:
- created in an ascertainable person; and
- is not subject to any condition precedent, other than the termination of the preceeding estate.
Special types of vested remainders
- VR subject to total divestment
2. VR subject to open
Vested Remainder Subject to Total Divestment
A remainder that is presently vested but may be terminated on the happening of a future event.
Vested Remainder Subject to Open
A remainder that has been made to a class and has at least one member who is ascertainable who has satisfied any conditions precedent to vesting, but may have other members join the class later.
Class Opening
Inter vivos conveyance: class opens at time of conveyance testamentary conveyance: class opens at death of T.
Class Closing
If RAP violates one member of class, entire gift fails. Rule of convenience - class closes as soon as one member of the class becomes entitled to immediate poss of the prop.
Executory Interests (def and types)
A future interest in a TP that cuts short the previous estate before it would have naturally terminated. RAP applies
- Shifting executory interest
- Springing executory interest
Shifting Executory Interest
the interest passes from one grantee to another
