Estates and Future Interest Examples

To A while A is working for B

A- Fee Simple Determinable + Possibility of Reverted

To A during A's employment with B

A- Fee Simple Determinable +POR

To A until A stops working for B

A-Fee simple determinable +POR

To A so long as A brushes his teeth every evening

A-FSD+POR

To A and his heirs

A-FSA

To A and his heirs, provided, however that A brushes his teeth every evening

A- FSSCS+Right of Re-entry

To A on the condition that A remains a student

A- FSSCS+RR

To A but if A does not remain a student, then to C

A- Fee simple absolute subject to an executory interest

C-shifting executory interest

To B for life, and if the Red Sox win the World Series then to A and his heirs

B-Life estate

A-contingent remainder subject to a condition precedent

To A for life, remainder to A's children (A has no children)

A- life estate

A's children contingent remainder subject to an unborn person

To A for life, remainder to those children of A who survive their father (A has two children)

A-Life estate

A's children- contingent remainder subject to a condition precedent {watch for doctrine of destructibility and R.A.P}

To B for life then to A and his heirs

B-Life estate

A- indefeasible vested remainder

To B for life and if A survives B then to A and his heirs

B- Life estate

A- contingent remainder subject to a condition precedent

To B for life, remainder to A and his heirs, but if A dies in B's life time then to C and his heirs

B-Life estate

A-vested remainder subject to a condition subsequent

C- shifting executory interest

To B for life and if by C’s death A has obtained a J.D. then to A and his heirs

B- Life estate

A- contingent remainder subject to a condition precedent

To B for life then to A and his heirs, but if A has not obtained a J.D by the time of D's death, then to C and his heirs

B-Life estate

A- vested remainder subject to a condition subsequent

C- shifting executory interest in fee simple absolute

To A for life, remainder to his children and his heirs

a. suppose A has two children

b. suppose A has no children

A- Life estate

a. vested remainder open to subject (this should trigger RAP)

b. contingent remainder to an unborn person

What are the words of limitations of a Fee tail

heirs and his body

What are the words of limitation of a life estate

for the life of

What are the words of limitation for a life of another

Life estate pur atre vie

What to look for in a contingent remainder

a. unborn person or unascertained person

b. a condition precedent (prerequisite before I can have it)

c. watch for R.A.P, Rule in Shelly's case and Doctrine of Destructibility

What to look for a vested remainder

a. subject to open

b. indefeasible

c. subject to a condition subsequent

d. look for Rule in Shelly's Case, RAP only applies to subject to open

A conveys "To B for his life. What is created/retained?If B dies what happens?

A- reversion in FSA, B- Life estate

after B dies it reverts back to A

A conveys Blackacre "To B for the life of C." What is created?

What happens to Blackacre if B dies and C is still alive?

A-reversion in FSA, B- Life Estate in pur autre vie

Unexpired life estate may pass to the owner's successor

A conveys "to B for his life." If B conveys his life estate to C, what does Katy C have?

A-reversion in FSA; B-Life estate; C- life estate in pur autre vie, expires when B dies & reverts to A

A conveys "To B for life, then to C and his heirs."

What is the state of the title?

What if C dies before B, and leaves everything to D in his will?

A-nothing, B- Life Estate, C- indefeasible vested remainder in fee simple

If C dies, D would take his place

What is created/retained: A "to B for his life"

A- reversion; B-Life Estate

What is created/retained: A "to B for the life of C"

A-reversion; B- LE in pur autre vie

To A for life, then to A, B, C and their heirs.

A- LE; A, B & C- indefeasible vested remainder in FSA

BUT if Shelley’s Case Applies:

A would just have a FSA, and the other remainders just are gone

To A and her heirs

FSA

To A for her life so long as she remains unmarried, then to A, B & C and their heirs.

A-Life Estate Determinable

A, B, C- contingent remainder subject to a condition precedent in fee simple absolute

To A and her heirs so long as she remains unmarried, then to A, B & C and their heirs.

A- Fee Simple determinable subject to an exec. interest

A, B, C- have a shifting exec interest in fee simple absolute

To A so long as she remains single and unmarried, and if she marries, to A, B & C in equal shares.

unclear- must make things extremely clear when drafting

What is created/retained?

1. to GM and its successors and assigns in FSA

2. to GM forever

3. to GM and its assigns forever

4. to GM

FSA

This is a corporation- don’t have to have magic words

Suppose: A’s will conveys Blackacre "to B for life, remainder to C and his heirs in FSA."

What is the state of the title following B’s death?

B- LE

C- vested remainder indefeasible in fee simple absolute

B donates a building “to UNL and its heirs so long as the building is used as a college of law and is named the “Justice RBG Building.” Suppose in 15 years the then Dean decides to rename the building "the President Obama Law Building." What is the state of the title following these events?

It was a FSD, once the Dean changes the name, it automatically reverts back to A

A conveys to “Alexander Hamilton and his heirs." What's created/retained under common law and modern law

H: FSA for both

A conveys to Alexander Hamilton. What's created/retained under common law and modern law

CL- A- Reversion; H-LE

ML- H has a FSA

A conveys to “Alexander Hamilton forever” What's created/retained under common law and modern law?

CL- A=reversion, H= LE

ML- H=FSA

A conveys to “Alexander Hamilton and his heirs so long as the property is used for residential purposes.”

A- Possibility of Reverter (POR)

H- FSD

A conveys to “Alexander Hamilton and his heirs until the property ceases to be used for residential purposes.”

A- Possibility of Reverter (POR)

H- FSD

A conveys to “Alexander Hamilton and his heirs while the property is used for residential purposes”

A- Possibility of Reverter (POR)

H- FSD

A conveys "to B and his heirs on the condition that the property not be used for commercial purposes, but if the premises are ever used for that, the grantor or his heirs shall have the right to re-enter and take possession."

A- Power of Termination/Right of Re-Entry

B- FSSCS

Suppose A owns a farm in FSA and conveys "to B and his heirs until the property ceases to be used as a farm." What is created/retained?

A -POR

B- FSD

Suppose A conveys a farm "to B and his heirs until the property ceases to be used as a farm, and then to C and his heirs." What is created/retained?

B- Fee simple determinable subject to an exec interest

C- shifting exec interest

Suppose that prior 1285, A conveyed Blackacre "to B and the heirs of his body."

A: POR

B- Fee Tail Conditional

Suppose that prior 1285, A conveyed Blackacre "to B and the heirs of his body." B has three kids over the next 5 years and then conveys "to C and his heirs." Now, what is the state of the title?

B- Fee tail conditional

C- FSA bc since B had kids, he could convey the whole thing

A conveys "to B and the heirs of his body." (after 1285)

B- Fee Tail

A- Reversion

A conveys "to B and the male heirs of his body." (after 1285)

B- Fee tail Male

A- reversion

A conveys "to B and the female heirs of his body." (after 1285)

B- Fee tail female

A- reversion

A conveys "to B and the heirs of his body by his wife C" (after 1285)

B- Fee tail special only to the heirs of B and C

A- reversion

A conveys Blackacre to B for life and if C graduates from law school, then to C and his heirs.”

What happens if Cornelius Husker is admitted to law school, and in April of his 3L year, Doctor Butcher dies?

B- LE, C- contingent remainder subject to condition precedent, A-reversion

It would ceases to exist due to the doctrine of destructibility

A conveys Blackacre to B for life and if C graduates from law school, then to C and his heirs.”

Suppose C graduates from law school and B is still alive. What's the state of the title?

B- LE, C- contingent remainder subject to condition precedent, A-reversion

Now it becomes a vested remainder indefeasible bc the condition has been met

A conveys Blackacre "to B for life, then to the heirs of C."

Suppose B dies and C is still alive. What is the state of the title?

A-reversion; B-LE; C heirs- contingent remainder subject to an unborn person

The land would revert back to A

Grutz conveys "to B for his life."

(b) Suppose subsequently, Grutz conveys his reversion to B. What is the state of the title now?

A- reversion; B- LE

Merger doctrine so FSA

Suppose A conveys Blackacre "to B for life, then to C and his heirs." Then C conveys his vested remainder to B. What is the state of the title?

A- Reversion; B- LE; C- vested remainder indefeasible in FSA

B now has a FSA bc of merger doctrine

A conveys "To B for life, remainder to B’s heirs." What do B and A have?

A- nothing; B- FSA

Rule in Shelly's case says that if someone holds a LE and also a vested remainder, it changes to a FSA and mergers

A conveys: "To B for life, remainder to C for life, remainder to the heirs of B.” What is the state of the title?

A- reversion; B- LE; C- vested remainder in life estate, indefeasible; B’s heirs- vested remainder in FSA

A conveys: "To B for life, remainder to C for life, remainder to the heirs of B.” What is the state of the title if Dr. Paine dies before Dr. Butcher?

Merges to a FSA- Shelly’s case and merger doctrine both apply!

A conveys Blackacre "to B for life, then to B's children and their heirs."

Does the Rule in Shelley's case apply? What is the state of the title?

no it does not because it is B's children therefore

B-LE

B's Children- contingent remainder to an unborn person

A conveys: "to B for his life, then to C for his life." What is the state of the title?

A- reversion; B- LE; C- vested remainder in LE

A conveys "to B for life, remainder to the children of C who are alive at B’s death and their heirs".

What kind of remainder do the children have?

A- reversion; B-LE; C- contingent remainder

Bc unascertained people and the condition has not been met yet

To A for life, and if B survives A, then to B and his heirs, but if B does not survive A, then to B’s children and their heirs

A- LE

B- contingent remainder subject to a condition precedent

Oscar children- alternate contingent remainder subject to a condition precedent

"To A for life, remainder to such of his children as survive him." A is alive and has 3 children, B, C & D. What is the state of the title?

A- LE

Children- contingent remainder subject to condition precedent

"To A for life, remainder to his children, but if any child dies in the lifetime of A his share to go to those who survive."

Suppose A was alive and did not have any children, what is the state of the title?

A- LE

Kids- contingent remainder subject to an unborn person

A conveys: "To B for life and, if C survives B, then to C and his heirs."

What happens if C does not survive B

B- LE; C- contingent remainder subject to a condition precedent in FSA

Since C has not met the condition, it reverts to A

A conveys: "To B for life, then to C and his heirs, but if C dies in B’s lifetime, then to D and his heirs."

B- LE

C- vested remainder in FSA, subject to complete defeasance (condition subsequent)

D- shifting exec interest in FSA

To A for life, then to B and his heirs. What kind of remainder does B have?

A- LE

B- vested remainder indefeasible

A conveys Blackacre to B for life, and if the Red Sox win the World Series in 2024, then to C and his heirs. What is the state of the title?

B- LE

C- contingent remainder subject to a condition precedent:

• if they win vested remainder if they lose it fails and reverts back to A after the LE

"to A for life, remainder to A's children." Assume A has no children at the time. What kind of remainder is this?

A- LE

A's children have a contingent remainder to an unborn person

To A for life, remainder to those children of A who survive their father." A is alive and has 3 children: B, C and D. What is the state of the title?

A- LE

Children- contingent remainder to a condition precedent

Reversion to the grantor

To A for life, remainder to his children, but if any child dies in the lifetime of A his share to go to those who survive."

1. Suppose at the time of this conveyance A is alive and has 3 children, B,C & D.

What is the state of the title?

2. Suppose A was alive and did not yet have any children? What is the state of the title?

A- LE

Children- vested remainder in complete defeance and subject to open

then it would be contingent remainder subject to unborn person

A conveys "To B for life, then to C and his heirs, but if C has not graduated from law school by the time of B's death, then to D and his heirs"

What is the state of the title?

B- LE

C- vested remainder subject to complete defeasance

• It has vested, but the condition is not yet met

D- shifting exec interest

A conveys "To B for life and, one year after B’s death, to C and his heirs."What interest does C have?

A- reversion; B- LE; C- springing exec interest

"to A for life, remainder to A's surviving children." Does the rule in Shelley's case apply?

A-LE; A’s kids- contingent remainder

No bc it only applies when it is referring A's heirs not when it is given to a specific group

"to A and his heirs, but if A dies without having married, then to B and his heirs."

The state of the title is?

A: FSA subject to an exec interest

B: shifting exec interest

"To A and his heirs so long as the property is not used for commercial purposes, then to B and his heirs." What is the state of the title?

A: Fee simple determinable subject to an exec interest

B: shifting exec interest in FSA

"To A and his heirs, but if A dies before B, then to B and his heirs."What is the state of the title?

A- FSA subject to an exec interest

B- shifting exec interest in FSA

Suppose that on January 1 A conveys Blackacre "to B and his heirs on next December 25."

What is the state of the title?

A: a fee simple subject to an exec interest

B: springing exec interest in FSA

A conveys Blackacre "to B and his heirs so long as the land is used only for residential purposes, but if the land is put to nonresidential use during B's lifetime, then to C and his heirs."What is the state of the title?

B- FSD subject to a exec interest

C- shifting exec interest in FSA

A: POR

A conveys "To B for life, then to B’s surviving children, but if B dies without children surviving, the property shall revert to the Grantor.

What happens when A later attempts to convey an absolute title to B?

B- LE; Kids- contingent remainder subject to an unborn person; A: reversion

A will no longer have a reversion

A conveys "To B and his heirs, but if B dies with kids surviving, then to the surviving kids and their heirs; but if B dies without surviving kids, A may re-enter and take possession."

What happens when the A later attempts to convey an absolute title to Frank?

B: Fee Simple subject to an exec interest (bc of kids); Kids: shifting exec interest; A: right of re-entry

A can only convey right of re-entry, B can’t have FSA, A keeps future interest unless A conveys it

To A and his heirs, so long as the land is a farm, then to B and his heirs.

What is the state of the title?

Does it violate R.A.P.?

A: FSD subject to exec interest

B: shifting exec interest

Yes, it violates R.A.P!!

No limit on the time it must vest therefore, it changes to a FSD+POR

A conveys "to the city so long as the property is used as a public library, then to B and his heirs."

What is the state of the title?

Does it violate R.A.P? if so what is the state of the new title?

City- FSD with exec interest

B has a shifting exec interest

R.A.P violation so it changes to a FSD+POR

A conveys "to the city on condition that the property be used as a public library, but if the property ever ceases to be used as a public library, then to B and his heirs."

City- FSSCS subject to an exec interest

B- shifiting exec interst

but again RAP! therefore it just is a FSSCS and RR

"To A for life, then to the first child of A who graduates from Law School."

A is alive, and no child of A has yet graduated from law school. What is the state of the title? Is there anything that may accelerate the determination of the contingency?

A- LE; First kid- a contingent remainder subject to a condition precedent and an unborn child

Doctrine of Destructibility would accelerate if A dies!

"To A for life then to the first child of A who graduates from Law School." A is alive, no child of A has yet graduated from law school, and no doctrine of destructability.

Does the contingent remainder in this problem violate the RAP? What happens to her contingent remainder upon A's death?

Violates RAP bc in 21 years she could have a baby, but we don’t know when she’ll graduate from school. If someone is not a life in being at the time of conveyance, it violates RAP.

Therefore, it is destroyed from the beginning, and now the grantor has a reversion.

Nebraska R.A.P

Nebraska adds the 90-year alternative- If the interest doesn't vest or fail within 21 years of a life in being, it's still valid as long as it vests or terminates within 90 years from when it was created.

A conveys "To B and his heirs so long as the land is used only for residential purposes, but if the land is put to non-residential use during B’s lifetime, then to C and his heirs."

Does this violate RAP?

B- FSD subject to exec interest; C- shifting exec interest

Does not violate RAP bc B is the measuring life

To A for life then to the first child of A who reaches age 25.

Assume A is alive and that no child of A has yet attained the age of 25.

At the time of the conveyance, A has 2 children: Bob, who is 15, and Sally, who is 13.

Apply the rule against perpetuities.

A- LE

children- does not violate RAP

G conveys "to A for life, remainder to A's widow for her life, remainder to the children of A living at his widow's death."

Assume A is alive and is married to B at the time of the conveyance. They are both 50.

They have two children.

(a) What does "A's widow" have? What do the children have?

(b) Apply the rule against perpetuities.

A: LE

A's widow: LE

kids: contingent remainder

Violates RAP bc there could be an afterborn widow; she could show up after the children are born if there is enough of an age difference. And she could delay the ultimate determination of the contingent remainder