Future Interests

Question 1

fee simple absolute

Answer 1

-largest estate because it can last forever

Question 2

defeasible fee

Answer 2

-fee simple that is capable of being cut short

Question 3

fee simple determinable

Answer 3

• fee simple ofr a durational period

- grantor has possibility of reverter automatically

Question 4

fees simple subject to condition subsequent

Answer 4

• fee simple terminated upon the happening of an event of condition
• right of re-entry must be elected, not automatic

Question 5

life estate

Answer 5

present possessory estate that ends at death of life tenant

Question 6

reversion

Answer 6

• future interest held by grantor following a life estate
• capable of becoming possessory at the natural termination of the grantee’s life etate
• held by grantor

Question 7

remainder

Answer 7

• future interest that is capable of becoming possessory at the natural termination of the prior estate
• held by 3P transferee

Question 8

Remainders important to trust practice

Answer 8

1) vested remainder
2) vested as a class gift
3) contingent remainder

Question 9

vested remainder

Answer 9

-where taker is ascertained and there is not a condition precedent

Question 10

vested remainder as a class gift

Answer 10

• (vested sub to partial divestment and vested subject to open)
• of a class of takers, some members are vested while other members remain open

Question 11

contingent remainder

Answer 11

-where taker is either unascertained or subject to condition precedent

Question 12

executory interest

Answer 12

-held by grantee (transferee) that will divest a prior vested interest
-will cut short a prior vested interest
-springing= divests the grantor
=shifting= divests a prior grantee

Question 13

taking stock

Answer 13

ask:

1) who has present possessory estate
2) who has a future interest
3) when will the future interest vest