future interests Flashcards
how many future interest are there
6
how many future interests that are capable of creation in grantor
3)
Future interests capable of creation in the grantor
1) possibility of reverter
2) right of entry
3) reversion
what does the possibility of reverter accompanied by
fee simple determinable
what does the right of entry accompanied by
fee simple subject to condition subsequent
- NOT AUTOMATIC
the 3 future interests in transferees
1) vested remainder
2) contingent remainder OR
3) executory interest (2 types
(a) shifting
(b) springing
what do remainder interests follow?
life estates or term of years
- remainderman always accompanies a preceding estate of fixed duration
what does a remainder never follow
a defeasible fee
what if the present estate is a defeasible fee, what type of future interest will it be if held by 3rd party
executory interest
when is a remainder VESTED
if BOTH
1) ascertained person (KNOWN) AND
2) NOT subject to any condition PRECEDENT
when is a remainder CONTINGENT
if it is created in either
1) UNKNOWN person (unascertained person) OR
2) IS subject to condition PRECEDENT or both
contingent remainders and RULE OF DESTRUCTIBILITY OF CONTINGENT REMAINDERS
at CL a contingent remainder was DESTROYED if it was
1) CONTINGENT at the time of
2) PRECEDING ESTATE ended
ML for destructibility
has been abolished. O or O’s heirs would hold the estate subject to B’s springing executory interest
has IL abolished the Rule in Shelley’s case
YES
- Thus, today when O conveys “To A for life, then to A’s heirs”
A has: life estate
A’s not yet known heirs: contingent remainder
O: has reversion
doctrine of Worthier Title (also known as rule against a remainder in grantor’s heirs)
(still applies in most states today) applies when
O who is ALIVE, tries to create a future interest in her heirs
- O , who is alive, conveys to “A for life, then to O’s heirs” if doctrine of WORTHIER TITLE DID NOT APPLY
A: life estate
O heirs: contingent remainder
if did apply
A: life estate
O: reversion
is doctrine of worthier title abolished in IL
YES
is the Doctrine of Worthier Title a rule of construction?
YES, not a rule of law
- Grantor’s intent controls. If grantor intends to create a contingent remainder in his heirs, that intent is binding
3 types of VESTED remainders
1) indefeasibly vested remainder
2) vested remainder subject to total divestment
3) vested remainder subject to open
what is the indefeasibly vested remainder
holder of the remainder is CERTAIN to acquire an estate in future with NO STRINGS ATTACHED
what makes a vested remainder subject to total divestment
no condition precedent but CONDITION SUBSEQUENT that could cut estate
what is the comma rule for vested remainder subject to total divestment
when conditional language in a transfer follows language that, taken alone and set off by commas, would create a vested remainder, the condition is a condition subsequent
when is a vested remainder subject to open
when at least ONE group of takers is qualified to take BUT 2) each class members share is subject to partial diminution b/c additional members can still join
when is a class open
if others can join
when is a class closed
when others cannot join
