Present and Future Interests (Property) Flashcards
What is a fee simple interest? Attributes? Language?
Closest thing our system has to full ownership of land.
“to A and A’s heirs.”
Unlimited duration and no future interest.
What is a life estate interest? Attributes? Language?
“To A for life” (reversion) | “To A for life and then to B” (remainder)
Limited duration for a human’s life.
Future interest as, upon death, the land goes to someone else. The default is a reversion.
You can sell your life estate interest.
What are the leasehold estates we studied? What are these?
term of years, periodic tenancy, tenancy at will, and tenancy at sufferance.
What are defeasible interests? Which ones did we study? What is the SoL for all of these?
These interests will terminate on the happening of an uncertain event.
Fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation
The SoL is 40 years.
What is a fee simple determinable?
so long as | until | to A so long as… | to A until…
The duration automatically comes to an end of an uncertain event
The future interest is the possibility of a reverter. Not a reversion that WILL happen, but a possibility of a reverter.
What is a fee simple subject to condition subsequent?
To A, but if… | To A, on the condition that… | To A, provided that…
Duration: Grantor has the right to take it back when an event occurs or fails to occur. Doesn’t happen automatically
Future interest is the right of entry AKA power of termination
What is a fee simple subject to executory limitation?
This is like a fee simple determinable or fee simple subject to condition subsequent except it goes back to a third party instead of the grantor.
Potentially unlimited duration.
Language: conveyance that would create a fee simple determinable or fee simple subject to condition subsequent, but the future interest is held by a third person, rather than the grantor.
future interest: without a reversion but with a remainder. Called an executory interest
What are the two remainders?
Vested and contingent remainders.
vested: in an ascertained person and not subject to a condition precedent than the natural end to the last term. Vested bc we know it’s going to happen.
Contingent: either we dont have an ascertained person or we have a condition precedent.
What happens if an estate ends before a contingency is resolved?
The future interest is not destroyed but rather converts into an executory interest that can divest into the holder.
What happens if O does not give away her entire interest with certainty?
This creates a reversion.
When a conveyance is ambiguous, how should it?
- Conveyance should be interpreted to best achieve the intent of the grantor.
- We’re trying to figure out what you intended to do as best as possible.
- Conveyances should be interpreted to favor a fee simple absolute.
- Fee simple absolute ends the problem and makes things clear again.
- Conveyances should be interpreted to avoid partial intestacy.
- If there’s a way to interpret to resolve it, then we will.
- Conveyances should be interpreted to favor the free alienability of property.
- We want someone to end up with the property and be able to use the property as they’d like.
- Conveyances should be interpreted to favor a fee simple subject to condition subsequent over a fee simple determinable.
- Law doesn’t generally want forfeiture. We want people to keep things.
- Conveyances should be interpreted to favor vested interests and disfavor contingent interests
- We’d rather something be solved than open.
What is a trust?
A trust is a legal device that allows people to separate legal ownership and benefit ownership. Beneficiary is the equitable owner/real owner and they have the rights to the benefits of the trust.
What are the duties of care and loyalty?
Care: You have to be diligent and not reckless in your duties.
Loyalty: Fiduciary has to be loyal to the benefits of the beneficiary. I can’t engage in self-dealing. For example, I cannot buy from or sell to the trust.
What is the rule against perpetuities?
No interest [subject to the rule] is good unless it must vest [in a closed class], if at all, no later than 21 years after some life in being at the creation of the interest.
Contingencies reflected in the interest must resolve themselves one way or the other within the period stated by the Rule. The Rule does not require that the interest actually vest in that time, they just have to resolve so that they are no longer contingencies within the time. We’re concerned about whether the interest vests or fails, not whether it becomes possessory.
Watch out for conveyances to grandchildren and any age contingencies of more than 21 years.
What interests does the RAP apply to?
Contingent remainders, executory interests, and vested remainders in an open class.
When do we evaluate the interests of a conveyance for RAP?
At the time the conveyance was made. Not at the time the will was written.
What is the fertile octogenarian problem?
That any living person can have a child. So, if we’re talking about X’s children, that class doesn’t die until they die as they are presumed to be able to have children.
What is the unborn widow problem?
I could reference my spouse, my spouse today days tomorrow, and then my “new” spouse is born. We marry 18 years later, they are my legal spouse under this.
What is a slothful executor?
theoretically the executor could not probate the will for more than 21 years after lives in being.
What is a requirement/duty of a life tenant?
Good husbandry doctrine. Per Sweeney, a life tenant must pay mortgage interest, taxes, and maintenance costs only to the extent the property produces enough income to do so when managed with reasonable care.
What is the difference between a reversion and a possibility of reverter?
A possibility of reverter occurs when the grantor has given away a fee simple determinable, which means he only has the possibility of obtaining interest in the property again to re-enter. A reversion is guaranteed, such as when you grant a mere life estate to someone–there will be a reversion of your interest in the property back to you.
