M3: Intro to Estate System Flashcards
What is an Estate?
3 definitions: 1) A present possessory property interest; 2) bundle of rights; 3) defined as the relationship between persons with respect to the land
What is a future interest?
An interest in property (real, personal, or in trust) which has the privilege of possession or enjoyment in the future. Right to to future possession.
Can be conditioned on the occurence of a certain event or conditions, or it can be unconditional.
What does it mean to be a testator/testatrix?
Person making the will.
“to devise” means what?
To die and leave property by a valid will
A devisor/devisee do what?
Devisor: A person who leaves property by will
Devisee: A person who receives property by will, only comes into effect upon death
What do we call it when a person who dies without a valid will? What is the person termed?
Intestate is dying without a valid will
Intestator/Intestatrix is the person who dies without a valid will
What are the three ways to transfer property inter vivos?
1) Convey (Conveyor/Conveyee)
2) Transfer (Transferor/Transferee)
3) Grant (Grantor/Grantee)
Can be used synonymously
How do we define “Heir” in property law/estates?
+ Same as descendant
+ A person who inherits property from someone who dies without a valid will (intestate)
+ A living person has no heirs! why? One’s heirs cannot be known until one dies.
What is the term for people who are named to receive property under a valid will?
Devisee or Legatee
How do you define grandparents, parents and people who are above you in the bloodline?
Ancestors
What is “issue” in property law?
Children, grandchildren, great grandchildren, adopted children = everyone below you under the bloodline
Who are “collaterals” in property law?
Siblings, aunts, uncles, nieces, nephews, cousins. Basically anyone who’s not issue or ancestor
What is the big deal with defining ancestors, issue, and collateral when we talk about estates?
If you die without a will (intestate), statute will dictate who gets your property, aka, all the people related to you in a hierarchical manner:
#1: Spouse #2: Issues #3: Ancestors #4: Collaterals
What is escheat? Are they a big deal to the state?
When a person dies without a will (intestate), with no surviving relatives, their estate goes back to the state general fund (pave roads, museums, etc.). VERY BIG source of funds for local governments.
*lingering evidence of feudal history
Define a life estate and elements of a life estate
“To A for life”, lasts for the life of A
A can use, rent for as long as they live
Then when A dies…
Always followed by a future interest (F1)
F1 will usually be a remaining interest or reversion
What is the most common, most simple to understand kind of estate?
Fee Simple Absolute! “To A”
+ Ex: homeowner = property interest lasts forever, not the person. When person dies you can transfer to someone else
+ No future interest
H: O conveys Blackacre “To A and her heirs, but if Blackacre is used for any purpose other than agricultural purposes, O has the right to re-enter and take possession of the land” What is the state of the title in Blackacre at common law?
A has a fee simple subject to a condition subsequent followed by a right of reentry by O
No other interests
H: O conveys Blackacre “To A and her heirs, but if Blackacre is used for any purpose other than agricultural purposes, O has the right to re-enter and take possession of the land”. After several years, A begins construction of several residences on Blackacre. O has died and devised her entire estate to B. What is the state of Blackacre?
A has most certainly broken the condition subsequent, but it does not automatically revert or terminate. If right of entry is exercised it is terminated.
Who has the right of entry? It depends on the state (ex: Mahrenholz). If right of entry is devisable, B has it. If it is not devisable, O’s heirs have it.
Either way, no one has attempted re-entry and A’s fee is still in effect.
H: O conveys Blackacre “To A and her heirs so long as Blackacre is used for residential purposes only” What is the state of title?
Fee Simple Determinable in A, with a possible reverter to O in fee simple absolute.
Reverter possibility does not have to be explicitly stated because it arises by operation of law.
H: O conveys Blackacre “To A and her heirs so long as Blackacre is used for residential purposes only”. Some years later, A constructs a factory on the property. O has died and devised her entire estate to B. What is the state of the title of Blackacre at common law?
We’re going to assume that the factory is a violation on the limitation and A is in breach of the fee simple determinable. This automatically terminates without any action needed from O or O’s heirs.
Title to Blackacre depends on succession to O’s possibility of reverter and local law. Most states permit reverter to be devised, so B would have fee simple absolute title. States that do not allow reverter O’s heirs would hold the fee absolute title as tenants in common.
H: O conveys Greenacre “to the Finger Lakes Land Trust (NPO) on condition that Greenacre remains forever underdeveloped and in its natural condition; in the event Greenacre is ever developed, residentially, commercially or otherwise, then to the Land Conservancy (another charity) in fee simple absolute” What is the state of the title?
Finger Lakes Land Trust = fee simple to subsequent executory limitation.
Land Conservatory = executory interest in fee simple absolute, it will possessory if Finger Lakes Land trust breaches the condition
H: O conveys Whiteacre “to A and his hers; but if A ever drinks alcohol or alcoholic beverages, then to B and his heirs.” Later, B executes and delivers a deed purporting to convey her interest in Whiteacre to C. Later still, A drinks whiskey and gets drunk. What is the state of the title in Whiteacre?
A = Had and lost a fee simple subject to executory limitation B = sold their executory interest, which is valid under the common law Rule Against Perpetuities C = executory interest purchased, now vested into fee simple absolute through B's conveyance and A's act that causes the the fee simple to terminate
H: O conveys Whiteacre “To A on the condition that A lives; in the event that A dies, then to B and his heirs.” What is the state of the title in Whiteacre?
A = life estate B = remainder interest in fee simple absolute
What are the three defeasible estates and what future interest accompanies each?
- Fee Simple Determinable (FSD): Accompanied by Possibility of Reverter
- Fee Simple Subsequent to Condition Subsequent (FSSCS): Accompanied by Right of Entry
- Fee Simple Subject to Executory Interest (FSSEI): Accompanied by Executory Interest
True or False: With a Fee Simple Determinable (FSD), the title passes automatically if a stated event happens
True.
Example from O: “To A, it’s successor and assigns so long as used as a school” = automatic and presumed if you do it in the right way
This could last forever if this building is used as a school. But if the property was not used for school, it automatically goes back to O
True or False: Future interest is not connected to Fee Simple Determinable
False.
FSD is accompanied by a future interest, usually retained by transferor or transferor’s heirs = possibility of a reverter
True or false: In a Fee Simple Subject to Condition Subsequent, the breach of condition automatically goes back to the grantor.
False.
Ex FSSCS from O: “To A, but if the premises are not used for cat rehabilitation purposes, the grantor has the right to reenter and retake the premises”
Not automatic, the grantor may/may not retake the property, A still has the property until O does something = tax responsibilities, upkeep, etc.
O has Right of Entry (ROE) and has to adhere to statute of limitations of adverse possession to get their property back.
