Future Interests in General Flashcards
(12 cards)
What are the Future Interest in the Grantor?
a. Reversion – what remains when a grantor conveys less than what the grantor owns
b. Possibility of reverter – created in grantor when grantor conveys a determinable estate
i. Determinable Estate: and estate that terminates automatically when upon happening of an event or condition
c. Power of Termination – created in grantor when grantor conveys an estate subject to condition subsequent
i. Estate Subject To Condition Subsequent: an estate that will terminate when a condition or event happens and right of entry is exercised
What are the future interest in the Grantee?
a. Remainder:future interest in a grantee that will vest in possession upon natural termination of preceding estate
ii. Contingent remainder
iii. Vested Remainder Subject to Open.
iv. Vested Remainder Subject to Complete Divestment
b. Executory Interest
What is a vested remainder?
future owner ascertained and no condition precedent.
What is a vested remainder subject to open
An interest that is held by a group of people where one or more members of that group is in existence while others unascertained.
What is a vested remainder subject to complete divestment?
vested remainder subject to condition subsequent
What is a Contingent Remainder?
Remainder that is subject to a condition precedent (clearly expressed real condition that must happen prior to vesting or unascertained party) OR is owned by an unascertained party OR both
What is an Executory Interest?
does not vest naturally, future interest in a grantee that will vest in possession by cutting short the preceding estate upon some event or condition or by destroying the preceding future interest. O→ and heirs, but if liquor is served, then to B and heirs.
What is the Rule against Perpetuities?
An executory interest or contingent remainder that could possibly vest in possession later than 21 yrs + 9 months after the death of all lives in being at the time of conveyance is void
RAP: Class Gifts
(including vested remainders subject to open) consider contingent interests of all persons who are potential additional members of the entitled class; if the interest of any. class member violates RAP, the entire class gift is void.
RAP: Contingent Remainder?
b. The contingent remainder that will become vested remainder w/in the time allowed by the RAP does not violate the RAP regardless of when it might later vest in possession. O→A for life, then to A’s children for life, then to A’s heirs. (Does not violate because the second A dies we know who his heirs are.)
RAP: what is the Unborn Widow Rule?
Unborn Widow: O→A for life, remainder to A’s widow for life, remainder to A’s surviving children”. This creates a contingent remainder in A’s surviving children that violates the traditional rule because A could marry someone who was born after the conveyance for O→A. The kids are void So O would have a reversion.
RAP: what is fertile Octogenarian rule?
O→A for life, remainder to A’s grandchildren. A could have a child late in life and die and that child has kids later and that violates rap.
