Present and Future Interests Flashcards
(16 cards)
Fee Simple
“and their heirs”
“in fee simple”
Most complete form of ownership, no separate future interest.
Life Estate
“for life”
“until death”
“while alive”
Grantor has a REVERSION unless the grant specifically states otherwise.
If a 3rd party has a future interest that future interest is a REMAINDER.
Fee Simple Determinable
“as long as…”
“while…”
“during…”
“until…”
Durational language.
Future interest is:
POSSIBILITY OF REVERTER (Automatic - interest goes back to grantor)
Fee Simple Subject to Condition Subsequent
“but if…”
“provided that…”
“on condition that…”
Conditional language.
Future interest is:
RIGHT OF RE-ENTRY/POWER OF TERMINATION.
(Not Automatic - interest goes back to grantor)
Fee Simple Subject to Executory Limitation
Future interest is a 3rd party that holds an EXECUTORY INTEREST
What is the future interest created when a grant is for a term of years?
Reversion (grantor)
Remainder (3rd party)
Remainder
Follows Life Estate or Term of Years when future interest passes to a 3rd party
Contingent Remainder
- Future interest is determined by a condition that is not currently satisfied.
- Future interest holder can not be identified due to conditional language.
Vested Remainder
3rd party future interest holder that is identifiable and not subject to divestment/not conditional.
Vested Remainder Subject to Open
Future interest class that has at least one currently identifiable party and has the potential for additional parties to be added.
“to the children of *** “ (at least 1 child already exists)
Vested Remainder Subject to Divestment
Future interest that is subject to an executory interest that could terminate the interest
“but if ** then to **…”
Vested remainder + “but if…”
Defeasible
possibility of forfeiture
Indefeasible
Can not be lost/taken away
Alienable
Transferable to another party during life
Devisable
Transferable through a will
Descendible
Transferable to heirs (only applies after someone has died and only when there is no will)
