Future Interests Continued
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1 Future Interests Continued Future Interests Future Interests Reside In the 1. Grantor or Transferor 2. Grantee or Transferee 1
2 1. Reversion Future Interests in the Grantor or Transferor Three Types of Interests 2. Possibility of Reverter (NOT a possibility of reversion) 3. Right of Entry/Power of Termination 1. Reversion Future Interests in the Grantor or Transferor Three Types of Interests 2. Possibility of Reverter (NOT a possibility of reversion) 3. Right of Entry/Power of Termination 2
3 Does O have a reversion? Casebook, p. 256, Q. 1 (a, b, c, & d) A. Yes B. No Yes No Future Interests in the Grantee or Transferee Two Types of Interests 1. Remainder a) Vested b) Contingent 2. Executory Interest 3
4 D E F E A S I B L E E S T A T E S Present Interests with Limitation and Future Interests Present Interest (with limitation) Fee Simple Determinable (FSD) Fee Simple Subject to Condition Subsequent FSD & Fee Simple Subject to Executory Limitation Future Interest Possibility of Reverter (grantor/transferor) Right of Entry/Power of Termination (grantor/transferor) Executory Interest (grantee/transferee) Future Interest in 2d Grantee Estates, p. 76 4
5 Vested Remainders If given to an ascertained person AND Not subject to a condition precedent (other than the natural termination of the preceding estate) Precedent: (pri-seed-[ә]nt) preceding in time or order; contingent upon some event occurring Note: Not subject to the rule against perpetuities Contingent Remainders If given to an unascertained person OR Subject to a condition precedent (other than the natural termination of the preceding estate) Note: Subject to the rule against perpetuities 5
6 Does B have a remainder or an executory interest? Casebook, p. 259 A. Remainder B. Executory Interest Remainder Executory Interest Is B s remainder vested or contingent? Casebook, p. 261, Q.1(a) A. Vested B. Contingent Vested Contingent 6
7 What interest does O have? Casebook, p. 261, Q.1(b) A. Vested remainder in fee simple B. Contingent remainder in fee simple absolute C. Executory interest for life D. Reversion in fee simple determinable Vested remainder in fee... 25% 25% 25% 25% Contingent remainder in... Executory interest for life Reversion in fee simple... What interest does B have? Casebook, p. 261, Q.2(a) A. Vested remainder for life B. Contingent remainder for life C. Executory interest for life D. Possibility of reversion for life 25% 25% 25% 25% Vested remainder for life Contingent remainder for... Executory interest for life Possibility of reversion for... 7
8 What interest does C have? Casebook, p. 261, Q.2(b) A. Vested remainder in fee simple B. Contingent remainder in fee tail C. Executory interest in defeasible fee D. Possibility of reversion fee simple 25% 25% 25% 25% Vested remainder in fee... Contingent remainder in... Executory interest in def... Possibility of reversion fe... What interest does O have if it said to C and her heirs if C survives A and B,? Casebook, p. 261, Q.2(c) A. Contingent remainder in fee simple absolute B. Reversion fee simple C. Nothing D. Possibility of reverter in fee tail Contingent remainder in... 25% 25% 25% 25% Reversion fee simple Nothing Possibility of reverter in... 8
9 Is the remainder vested or contingent? Casebook, p. 261, Q.3 A. Vested B. Contingent Vested Contingent Is the remainder vested or contingent? Casebook, p. 261, Q.4(a) A. Vested B. Contingent Vested Contingent 9
10 Is the remainder vested or contingent? Casebook, p. 261, Q.4(b) A. Vested B. Contingent Vested Contingent 10
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