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Flashcards in Future Interests Deck (24):
1

Possibility of reverter

created by the granot accompanies only fee simple determinable

FSDPOR

2

Right of Entry

created by the grantor, accompanies FSSCS, right to enter and retake

3

Reversion

created by the grantor - arises whenever the grantor has something left over after conveying a present estate

4

Vested Remainder

future interest in a transferee (not O)
1. created in a known taker
2. not subject to a condition precedent

Three Types of Vested remainders
1. Indefeasibly Vested Remainder
2. Vested Remainder Subject to Complete Divestment
3. Vested remainder subject to open

5

Indefeasibly Vested Remainder

"To A for life and then to B"

when the taker is known and not subject to any conditions

6

Vested Remainder Subject to Complete Divestment

"To A for life, then to B, but if B dies under 25 then to C"

Remainder is subject to a condition. If condition manifests, will remove interest from the remainder man.

7

Vested remainder subject to open

"To A for life then to B's children"

Remainder is divested into a group of takers where at least 1 of them is able to claim.

A class of open when others can join. A class is closed when others cannot join.

8

Vested remainder subject to open

"To A for life then to B's children"

Remainder is divested into a group of takers where at least 1 of them is able to claim.

A class of open when others can join. A class is closed when others cannot join.

9

Contingent Remained

future interest in a transferee (Not O)

"To A for life then to Bs 1st child" B has no children.
1. create in unknown takers OR

"To A for life and then if B graduates from college then to B" A has a life estate. B is still in high school.
2. when subject to conditions precedent

10

Rule of distractibilty

Rule that limits contingent remainders. Abolished today.

The contingent remainder would be destroyed if it was still contingent when the preceding estate ended.

11

The Rule in Shelley's Case

Rule that limits contingent remainders. Only applies here:

"To A for life and then the A's heirs" A is alive.

Present and future interests merge giving fee simple absolute.

12

The Rule in Shelley's Case

Rule that limits contingent remainders. Only applies here:

"To A for life and then the A's heirs" A is alive.

Present and future interests merge giving fee simple absolute.

13

Doctrine of Worthier Title

Rule that limits contingent remainders.

"O conveys to A for life and then to O's heirs"

When O who is alive tries to create a future in his heirs. The contingent remainder in O's heirs is void. O has a reversion because it is uncertain how many heirs O will have.

Exists to promote the free transfer or inalienability of land.

14

Executory interest

Future interest in a transferee, takes effect by cutting hort another or benefitting from another's forfeiture.

1. Shifting Executory Interest
2. Springing Executory Interest

15

Shifting Executory Interest***

"To A but if B returns from Canada next year to B"

always follows a defeasible fee and cuts short someone other than O. Moves from to A to B. B receives if B completes the condition.

16

Springing Executory Interest***

"O conveys to A if and when he marries" A is not married

A can off off O. When the condition is met, A can cut off O.

17

Indefeasibly Vested Remainder

"To A for life and then to B"

when the taker is known and not subject to any conditions

never violates RAPS

18

Vested Remainder Subject to Complete Divestment

"To A for life, then to B, but if B dies under 25 then to C"

Remainder is subject to a condition. If condition manifests, will remove interest from the remainder man.

never violates RAPS

19

Vested remainder subject to open

"To A for life then to B's children"

Remainder is divested into a group of takers where at least 1 of them is able to claim.

A class of open when others can join. A class is closed when others cannot join.

Subject to RAPS

20

Contingent Remained

future interest in a transferee (Not O)

"To A for life then to Bs 1st child" B has no children.
1. create in unknown takers OR

"To A for life and then if B graduates from college then to B" A has a life estate. B is still in high school.
2. when subject to conditions precedent

Subject to RAPS

21

Shifting Executory Interest

"O to A but if B returns from Canada next year to B"

Cuts off someone that is not the grantor. always follows a defeasible fee and cuts short someone other than O. Moves from to A to B. B receives if B completes the condition.

22

Springing Executory Interest

"O conveys to A if and when he marries" A is not married

Cutts off the grantor, O. A can cut off O. When the condition is met, A can cut off O.

23

Rule Against Perpetuties

Certain future interests are void if there is a chance that the interest might vest after 21 years of a validating life

Purpose: not letting uncertainty go beyond one's life plus 21 years

RAPS only apply to contingent remainders, executory interests and vested remainders subject to open

24

RAPS Test

1. Classify all future interests.
2. What has to happen for a future interest holder to take?
3. Find the validating life --> life relative to the condition's occurrence
4. Will we know after a life + 21 years if the future interest holder can take