Present Estates and Future Interests

Question 1

A fee simple is absolute ownership of indefinite or potentially infinite duration. It is freely transfersable, devisable by will, and

Answer 1

descendible through intestacy

Question 2

There is _____ future interest with a fee simple absolute

Answer 2

NO

Question 3

A defeasible fee is a fee simple with

Answer 3

a catch

Question 4

to be defeasible means it’s capable of risk of

Answer 4

forfeiture

Question 5

a FSD terminates upon the happening of a stated event and automatically

Answer 5

reverts to the grantor

Question 6

FSD is created by using ____ language

Answer 6

durational

Question 7

examples of durational language

Answer 7

“to A for so long as …”
“to A while….”
“to A during…”
“to A until….”

Question 8

in a FSD, if the stated condition is violated, then forfeiture is

Answer 8

automatic

Question 9

the future interest that accompanies a FSD is a

Answer 9

possibility of revertor (POR)

Question 10

a POR means that the estate automatically reverts back to the grantor upon

Answer 10

the happening of the stated event

Question 11

the POR is TDD meaning its

Answer 11

transferable, devisable by will, and decendable by intestacy

Question 12

A fee simple subject to condition subsequent is an estate in which the grantor reserves the right

Answer 12

to terminate the estate upon the happening of a stated event, meaning that the estate does NOT AUTOMATICALLY terminate - grantor MUST take some action

Question 13

the two main ingredients for a fee simple subject to condition subsequent is

Answer 13

(1) use of conditional words like “upon condition that…. provided that… but if”
AND
(2) an explicit statement of the grantor’s right of re-entry

Question 14

when thinking about the fee simple subejct to condition subsequent, remember the key phrase “its my….”

Answer 14

prerogative

Question 15

the “right of entry” that accompanies a fee simple condition subsequent is also called a

Answer 15

power of termination

Question 16

If a fee simple terminates upon the happening of a stated event and then passess to a _____ rather than ______ then the third party has an ____

Answer 16

3 party

reverting to the grantor or giving grantor right to terminate

executory interest

Question 17

The future interest that accompanies the executory interest is a

Answer 17

shifting executory interest

Question 18

words of mere desire, hope, aspiration, expectation, or motivation are insufficient to render an estate a ___

Answer 18

defeasible fee

Question 19

An absolute restraint on alientation that purports to restrict the transferee’s ability to transfer a fee simple is

Answer 19

NOT ALLOWED

Question 20

a life estate is one measured by one’s life or the lives of

Answer 20

one or more persons

Question 21

a life estate is measured in explicit ____ and NEVER term of years

Answer 21

lifetime terms

Question 22

A life estate “pur autre vie” is measured by a life other than

Answer 22

the grantee’s

ex: to A for the life of B

Question 23

a life estate pur autre vie also results when the life tenant conveys their life estate to ___

Answer 23

another

Question 24

The future interest that accompanies a life estate is a

Answer 24

reversion, if held by O

remainder, if held by third party

Question 25

a life tenant must not commit waste. Three types of waste

Answer 25

(1) voluntary waste (2) permissible waste (3) ameliorative waste

Question 26

If a future interest is held by a transferor, it must be

Answer 26

(1) possitility of revertor (2) a right of entry (3) a reversion

Question 27

if a future interest is held by someone other than the transferor, it must be

Answer 27

(1) a contingent remainder (2) a vested remainder (3 types) (3) executory interest (2 types)

Question 28

a reversion is the estate left in a grantor who conveys _____ than they own

Answer 28

less

Question 29

a reversion is tranferable, devisable by will, and ___

Answer 29

inheritable

Question 30

All reversionary interests are VESTED and thus not

Answer 30

subject to RAP

Question 31

if a future interest is held by someone other than the grantor, it has to be either

Answer 31

(1) a contingent remainder OR (2) a vested remainder OR (3) executory interest | Executory interests: (1) shifting (2) springing ## Footnote Vested remainders: (1) the indefeasibly vested remainder, (2) vested remainder subejct to complete defeasance, (3) vested remainder subject to open

Question 32

A remainder is a ____in a ____ that can become possessory on the natural expiration of the preceding estate

Answer 32

* future interest * third person

Question 33

a remainder must be _____ created

Answer 33

expressly

Question 34

remainders are either ____ or ____

Answer 34

vested or contingent

Question 35

The remainder is very ____ never alone, and always accompanying a

Answer 35

sociable preceding estate of known, fixed duration (like life estate or term of years)

Question 36

Remainders are ______ they never cuts the prior taker short or divests it

Answer 36

patient and polite

Question 37

can a remainder ever follow a fee simple estate?

Answer 37

NO because it is of potentially infinite duration

Question 38

A remainder is contingent if it is (1) created in _______ persons

Answer 38

(1) unborn or unascertained persons, or (2) subject to a condition precedent, OR BOTH

Question 39

a contingent remainder may be contingent to a ___ or ____

Answer 39

person or event

Question 40

a vested remainder is one created in an existing and _______and is not subject to a ____

Answer 40

ascertained condition precedent

Question 41

3 types of vested remainders

Answer 41

(1) indefeasibly vested remainder (2) vested remainder subject to total divestmenet (3) vested remainder subject to open

Question 42

Rule of convenience says that in the absense of express contraty intent, a class closes (that is, no one born after that time may share in the gift) when

Answer 42

some members of the class can call for distribution of their their of the class gift AKA when ANY member of the class can demand possession

Question 43

A shifting executory interest always follows a ______ and cuts short someone _______

Answer 43

defeasible fee other than the grantor

Question 44

a springing executory interest cuts short the interest of

Answer 44

O, the grantor

Question 45

Does RAP apply to vested intersts?

Answer 45

NO unless its a vested remainder subject to open

Question 46

what are the 4 RAP steps

Answer 46

(1) determine the intersts (2) how does the future interest holder take (3) find measuing life (4) when will we knwo if the future interset holder can take

Question 47

RAP only applies to

Answer 47

Contingent remainders Executory interests certain vested remainders subject to open

Question 48

RAP does NOT apply to any of the 3 future intersts capable of creation in the ___ or to

Answer 48

grantor = (1) POR (2) right of entry (3) reversion indefeasibly vested remainders, or vested remaindres subejct to total divestment

Question 49

BRIGHT LINE RULE - an executory interest with no time limit violates __

Answer 49

violates RAP