Possessory Estates
What are collaterals
What are ancestors
Collaterals-everyone related by blood that is not ancestors or descendants (brothers, sisters, nephews)
Ancestors- parents, grandparents
What are the 6 types of present Estate Interest
Fee Simple Absolute
Fee Simple Determinable
Fee simple Subject to Condition Subsequent
Life Estate
Fee Tail
Term of Years
What follows a Life estate?
Why?
Reversion; because once the life is up, unless it is transferred to another person then it goes back to the original grantor
Bob writes a grant which reads, “To Alex for life.” Which of the following is most correct about Bob’s interest:
A. Bob has a possibility of reverter if he outlives Alex
B. Bob has a reverter
C. Bob has a reversion, but only if he outlives Alex
D. Bob has a reversion
E. Bob has a fee simple subject to an executory limitation
D. Bob has a reversion
(Because reversion is what the grantor retains when he grants a life estate. After the expiration of the life estate, the interest will revert back to the grantor.)
"To Ben until he dies and then to Tuck as long as he is 21 or older. If not, then to Richard.” Tuck is 4 years old. What interest does Richard have?
A) Executory limitation in fee simple
B) vested remainder in fee simple absolute
C) contingent remainder in fee simple absolute
C) contingent remainder in fee simple absolute
Where does a reversion go
Goes back to the grantor
What are the key words for Fee simple absolute, life estate, and fee tail?
Bonus: Do we still use fee tails?
Fee Simple: "To A and her heirs"
Life Estate: "From A to B for life"
Fee Tail: "To A and her heirs of their body"
Bonus: NO
What is required to determine if a remainder is contingent or vested
Beneficiary is born
Beneficiary is ascertainable
There is no condition precedent
If these three are not met, then we don't know who get it until it happens so its contingent
Al, Rob and Ted are best friends. While on their annual “all guys” fishing trip Al writes a grant which reads, “I leave my condo in Vail to Rob for life, and then to Ted’s heirs.” Which of the following statements is most true about this grant?
A. Rob has a shifting executory interest and Ted has a remainder
B. Rob has a life estate and Ted has a vested remainder
C. Rob has a life estate and Ted’s heirs have a contingent remainder
D. Rob has a term of years and Ted has nothing
C
(Rob has a life estate because of the words “for life;” Ted’s heirs have a contingent remainder, because Ted is alive, and we don’t know who the person’s heirs are until that person dies.)
O conveys “to A for life, then to the Heirs of B” B is alive.
What type of remainder is present here and why?
The remainder is contingent because the heirs of B cannot be ascertained until B dies
What is a present estate
owner holds an estate in land that allowed current possession. It may or may not be cut short by one or more future possessory estate.
What is the magic words for fee simple subject to a condition subsequent?
But if/provided that/however, if"
what are the 3 types of future estates
Vested remainder, contingent remainder, executory interest
What present interest is here:
To Grace and her heirs provided that she does not use the land to grow illegal plants.”
To Fred for the natural term of his life.
Grace has a fee simple subject to a condition subsequent
Fred has a life estate
After 84 long years, Mary is towards the end of her life. Owning a large farmhouse, Mary gets together with an attorney and writes a will. The will states "My farmhouse goes to my beautiful daughter Lacy for the rest of her life, and then to any children she may have." What type of possessory estate has Mary created?
A.) Mary has created a life estate
B.) Mary has created a fee simple, a life estate, and a reversion
C.) Mary has created a life estate and a remainder
D.) Mary has created a fee-simple
C.) Mary has created a life estate and a remainder
What is an escheat, what is intestate?
Escheat- if a tenant dies without heirs the land returns to the State (gov’t)
Intestate- dying without a will
What is a life estate?
What is a fee simple determinable?
What is a fee simple subject to condition subsequent
Life estate: You have property for the duration of your natural life
Fee simple determinable: Is a fee simple limited that it will end automatically when a stated event happens
Fee simple subject to condition subsequent: Doesn’t automatically terminate but may be cut short or divested at the transferor’s election when a stated condition happens
Where does the property go if there is a reverison?
Where does the property go if there is a remainder?
Reversion: Give the property back to the grantor after the possession in the life estate
Remainder: gives it to a following 3rd party
John conveys Blackacre to Anna "for life" and then to her unborn future child. Anna is not married and does not plan to have children for at least a few years. If and when she does have a child, what interest does the child have in Blackacre?
A. None, since the child could not be named in the vesting instrument, it has no interest.
B. Fee simple determinable, since the interest is determinable on Anna dying.
C. Term of years, since it will be a number of years until the child can take legal possession.
D. Contingent Remainder, since the child was unborn at time of conveyance.
D
Marus moved into a haunted house. After years of socks going missing, his shoes flying off shelves, and finally a missing underwear incident, he has decided to give up ALL rights to his house to someone else. If he wants to give it to Luna, what type of possessory estate should Marcus use?
A.) Remainder
B.) Fee Simple Absolute
C.) Fee Simple subject to Conditions
D.) Life estate
B.) Fee Simple Absolute
Bad conveys his land "to Bunny and his heirs." If Bunny dies interstate without issue, will the land escheat to the state?
A.) Greenacre automatically reverts to O.
B.) Greenacre passes to A’s best friend since no heirs exist.
C.) Greenacre is transferred to the city for public use.
D.) Greenacre escheats to the state only if A has no surviving heirs.
D.) Greenacre escheats to the state only if A has no surviving heirs.
What is a possible consequence of a fee simple determinable?
a) It automatically terminates when a condition is no longer met
b) The tenant has a right of entry to reclaim the property
c) It lasts for the lifetime of the tenant
d) The grantor cannot retain any future interest in the property
a) It automatically terminates when a condition is no longer met
3. Bad conveys his land “to Bunny for life, then to Rauw.” Bunny wanting quick cash, begins cutting down all the palm trees and coconuts in the land, permanently reducing the land’s value. Rauw objects and sues Bunny. What legal doctrine is Rauw relying on?
A.) Adverse Possession Doctrine.
B.) Waste Doctrine, because Bunny is committing affirmative waste by harming the property’s long-term value.
C) Feudalism Doctrine.
D.) Doctrine of Mergers.
B.) Waste Doctrine, because Bunny is committing affirmative waste by harming the property’s long-term value.
Jim conveys his South Texas Ranch to his best friend Sarah for life and then to his friend Bob "and his heirs." If Sarah Bob dies before Sarah, and then Sarah dies, who holds the fee simple?
A. Jim and his heirs, since Bob's death would trigger a reversion.
B. Sarah, since she was the last one to possess the property,
C. Sarah, since her life estate would become a fee simple absolute.
D. Bob's heirs, since his death is not a condition and his heirs hold a vested remainder interest.
D. Bob's heirs, since his death is not a condition and his heirs hold a vested remainder interest.
Penelope is a new-age attorney helping her great-aunt write a will. Her great-aunt wants to make a fee simple to give her daughter the property, but she wants to add a condition that if her daughter marries a man who smokes, she will not get the house. What magic words does Penelope have to add in to make a fee simple determinable estate?
A.) "As long as" you don't marry a man who smokes you get the house.
B.) You get the house "for life and the heirs of your body".
C.) You get the house "for life"
D.) You get the house "as long as" you don't marry a man who smokes, "but if" you do then you don't get the house.
A.) "As long as" you don't marry a man who smokes you get the house.