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Flashcards in future interests Deck (45)
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1

how many future interest are there

6

2

how many future interests that are capable of creation in grantor

3)

3

Future interests capable of creation in the grantor

1) possibility of reverter
2) right of entry
3) reversion

4

what does the possibility of reverter accompanied by

fee simple determinable

5

what does the right of entry accompanied by

fee simple subject to condition subsequent
- NOT AUTOMATIC

6

the 3 future interests in transferees

1) vested remainder
2) contingent remainder OR
3) executory interest (2 types
(a) shifting
(b) springing

7

what do remainder interests follow?

life estates or term of years
- remainderman always accompanies a preceding estate of fixed duration

8

what does a remainder never follow

a defeasible fee

9

what if the present estate is a defeasible fee, what type of future interest will it be if held by 3rd party

executory interest

10

when is a remainder VESTED

if BOTH
1) ascertained person (KNOWN) AND
2) NOT subject to any condition PRECEDENT

11

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

12

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

13

ML for destructibility

has been abolished. O or O's heirs would hold the estate subject to B's springing executory interest

14

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

15

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

16

is doctrine of worthier title abolished in IL

YES

17

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

18

3 types of VESTED remainders

1) indefeasibly vested remainder
2) vested remainder subject to total divestment
3) vested remainder subject to open

19

what is the indefeasibly vested remainder

holder of the remainder is CERTAIN to acquire an estate in future with NO STRINGS ATTACHED

20

what makes a vested remainder subject to total divestment

no condition precedent but CONDITION SUBSEQUENT that could cut estate

21

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

22

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

23

when is a class open

if others can join

24

when is a class closed

when others cannot join

25

when is a class closed at CL (rule of convenience)

class closes w/e any member CAN DEMAND POSSESSION

26

x/c to rule of convenience (when a class is closed at CL)

the womb rule, if a child is in child at death of parent, will share with other children who can demand possession

27

what is an executory interest

a future interest created in transferee (a 3rd party) which is not a remainder and which takes effect by either cutting short some interest in another person (shifting) or in the grantor or heirs (springing)

28

what must a SHIFTING executory interest follow

defeasible fee

29

what does a SHIFTING executory interest cut short (whoms interest)

a THIRD PARTIES interest
- NEVER GRANTOR'S

30

what rule to always think of with executory interests

RAP rules against perpetuates