Part 1, Future Interests

8/3/2019 Part 1, Future Interests

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I. Estates in LandA. Estate in land

1. It is a possessory interest in land measured by its durationB. words of purchase

1. they designate who is to take an estate by grant or will. ToCrippen until he sells his farm To Crippen are the words of

purchase.C. Words of limitation

1. words of limitation defined the duration of the estate granted2. Example: to Anna Bolan unless she has her 11 finger surgically

removedunless she has her 11th finger surgically removed arewords of limitation, denoting a defeasible fee simple (one capable

of being forfeited).

D. non-freehold estates* holders are not seise d of the land they do not hold legal title- whichcomes into play, for example with the destructibility of contingentremainders.

1. estate for years2. tenancy from period to period (periodic tenancy)3. tenancy at will4. tenancy at sufferance

E. three types of freehold estates (STaLe)1. fee simple absolute

i. Magic words:a. At common law: .and his heirs. Anything

less was assumed to create only a life estatewith a reversion in the grantor/transferor. NO

OTHER WORDING IS PERMISSIBLE. Thisapplied only to conveyances, not devises.

b. Modern way: not necessary to create a feesimple absolute. Unless limited assumed to befee simple absolute.

ii. absolute land ownershipiii. at any given time all the rights, president future, and a

piece of land must add up to a fee simpleiv. key traits

a. it is inheritable by holders heirsb. it is alienable inter vivos and devisablec. it is not subject to defeasance (which is what

absolute signifies; a fee simple defeasible issubject to the possibility of forfeiture)

d. it is of infinite durationv. Inheritance of Fee simple

e. Heirs at common law when a persondies intestate, the decedents real

property goes to heirs.vi. Conveyances ambiguity: Assume the grantor gave all

the grantor had. When its ambiguous its a fee simple

absolute.2. fee tail

i. magic words


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a. At common law: to John and the heirs ofhis body

b. Modern view: Most states have abolished thefee tail and view the magic words to createonly a fee simple estate.

ii. a freehold estate inheritable only by the grantee's bloodlineal descendents.

iii. As long as there are blood descendents of the originalgrantee, the estate continues; if there are not, the estateautomatically reverts to grantor (or his estate). Thus, the

fee tail estate is not infinitethe grantor retains areversion.

3. life estatei. an estate whose duration is measured by the life or lives of

one or more personsF. curtesy

1. the husband's counterpart of the legal life estate called powerinother words, the interest husband takes in lands owned by his wife

when she dies. It is a common-law rule granting the husband a life

estate in all the lands in which his wife at a fee interest will the twowere married. As long as issue were born alive, capable ofinheriting. (Contrast with our, or wife only gets a life estate in one

third of her husband's lands and issue aren't relevant.)2. Divorce terminates the husband's right to curtsy3. during the wife's life, the curtsy is inchoate, is not an estate, and

is not therefore reachable by creditors4. Curtsey has been abolished or seriously modified in almost every

state

II. Future Interests - six types (ViCE ReaPeR) Vested; Contingent; Executoryinterest; Reversion; Possibility of Reverter; and Right of Reentry.

*the interest leftover when the grantor conveys away less than hisentire estate (life estate, fee tail, non-real estate). It is a generic term forremainders, executory interest, reversions

*the future interest is not presently possessory, but it may become so

1. Vestedi. it means that the one who has the interest is ascertainable;

and the estate has no condition precedent.

ii. Future interest retained by the grantorreversion,possibility of reverter, and power terminationare alwaysconsidered vested even though they are not at all certain

to take effect.

iii. Significance: investing is important in relation to the ruleagainst perpetuities, which invalidates future interest

capable of vesting remotely

2. when grantor does not convey a fee simple absolute, theseare the only three interests you may retain (ReaPeR)

i. reversion


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ii. possibility of reverteriii. right of reentry for condition broken (also called right of

entry or power termination).3. To prevent future interests that can be created in a

transferee (ViCE)

i. remainders (vested and contingent)ii. executory interests (shifting and springing)A. remainders: Two Types

*generally (PEPSI)i. future interestii. created in one other than the grantoriii. to become possessory (a present interest)iv. on the natural expirationv. of a preceding estate (to another individual)vi. and the same instrument.vii. Note: remainders analogize to a reversion, but is created in

101 other than the grantor.

viii.At common law: only follow a life is estate or fee, not a lotof fee simple not real estate.

ix. Modern rule: it can follow a life is stuff you fail, or listednon free-hold estate, but still cannot follow a fee simpleestate

x. must be expressly createdxi. leases: under common-law, a remainder cannot follow a

lease (only a freehold estatea life estate or a fee tail). But

under modern rules yes (can also follow non-freeholdestates for years)

xii. a remainder can be a fee simple or fee tail, life estate, orestate for years.

xiii.Ambiguity: iif the conveyance is unclear as to whether itcreates a vested remainder or a contingent remainder the

courts prefer a vested remainder.xiv.Ambiguity: if a conveyance is unclear as to whether it

creates a contingent remainder or and executory interestcourts prefer the contingent remainder.

1. vested remainder: three types (STAVe Off)i. indefeasibly (or absolutely) vested remainders

a. a future interest created in ascertainedperson or persons in being (other than thegrantor)

b. which is certain to become possessory (theperson or persons who hold the remainderwhen the preceding estate terminates are

certain to take possession of the property inwhich the remainder was created)

c. when the preceding estates terminatesd. and it cannot be defeated or terminated


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*compare: the inability to be defeated or

diminished distinguishes an indefeasibly

vested remainder from the other two vestedremaindersa vested remainder subject toopen and a vested remainder subject to total

divestment.

ii. vested remainder subject to open (subject to partialdivestment) (EsCAPeD)

a. is a future interest in the form of theremainder which is:

b. created in the class of persons (like children)c. at least one of whom is ascertained and in

existence

d. which is certain to become possessory whenpreceding estates terminate

e. and is capable of being diminished by othersentering the class

f. most common in gifts to someone's childreniii. vested remainder subject to complete (or total)

divestment

*always this has been fertile during life, devisable, andinheritable;

a. it is a future interestb. created a party other than the grantorc. which is created in a person ascertained and

in being

d. and is subject to the condition subsequent butnot a condition precedent (in other wordsnothing stops the person from taking

possession, but the occurrence of some ofthem can take it away.)

2. contingent remainderi. it is a future interest in the form of a remainder that isii. subject to a condition precedent (and other word in the

previous estate ends, the estate cannot become possessory

and last the condition precedent has also occurred) or

iii. created in favor of an unborn person or is to be taken byan unascertained person.

*has always been devised irritable (unless the remainderSkinners contingent date holders other survivalist which

case it can exist in no one but the grantee), but was nottransferable during life, is now in most states

* an infinite number of contingent remainders can follow afreehold estate


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1. springing executory interesti. divests a transferor of possession divest the transferor in

the future (this is known as a springing executory

interest) takes it away from the grantor

2. shifting executory interesti. divest or cut short some interest in another transferee 3rd

party (this is known as a shifting executory interest, or

*remember: Spring forward (from grantor) and should decide

(from another grantee).

C. reversion1. the future interest arising in the grantor when she conveys an

estate of shorter duration than the estate she possesses (thegrantor has a fee simple and he conveys a detail, like estate, orleaseholdthe grantors interest is reversion).

2. A reversion is alienable inter vivos, divisible and inheritable3. three Estates grantor can grant the creator reversionary interest

i. life estate, leasehold estate, and fee tailii. Mnemonic: LiL FEET (Life; Lesehold; Fee Tail)

4. difference between a reversion and the possibility ofreverter and the power of termination

i. a reversion because possessory when a lesser estateinevitably terminates (a life estate in not realistic). Theother to follow defeasible fees, which are states that may

never terminate. The sign conveying a retail estate leavesa reversion. Although this doesn't exactly fit this role

under most modern rules you can create a fee tail anyway.5. Reversions are always vested from the time they arrived

sincei. the holder of interest (the reversion) is ascertainableit's

the grantor; and

ii. the estate has no condition precedentwhen the grantee'sestate terminates, the grantor automatically regainspossession

6. rule against perpetuitiesi. reversionary interests are not subject to the rule because

such interests are considered to best the moment they

arise, and not at some future time. Reversionary interestare the part of the grantor's estate not conveyed to the

grantee.

D. possibility of Reverter1. it is a future interest2. which the grantor retains3. when he conveys a fee simple determinable estate


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4. a possibility of revert or only can arise when the grantor conveysthe fee simple determinable

5. possibility of inverter is not subject to the rule against perpetuities,since it is vested from the moment it is created

6. at common law, a possibility of reverter was NOT alienable intervivos and devisable, but it was inheritable. Today most courts hold

that possibilities of her murder are inheritable, divisible, andalienable inter vivos and some states enacted statutes that change

the common law.7. Waivable: No, because a possibility of reverted results in an estate

automatically reverting to the grantor on the happening of thestated event. Since the grantor does not need to take positive

steps for this to happen, it cannot be waived, either.

8. Forfeiture of the estate: Does not result in forfeiture of an estate.E. right of reentry/power of termination

1. it is a future interest2. in which the grantor retains (so it's vested)3. when he conveys an estate subject to a condition subsequent (fee

simple subject to a condition subsequent, or leasehold, or lifeestate subject to a condition subsequent)

4. it can only follow an estate subject to a condition subsequent!5. Note: at common law, right of entry was not alienable inter vivos

or devisable, but it was inheritable; according to most modern

courts, rights of entry are devisable and inheritable but not

alienable during life (unless accompanied by a reversion). Statutes,of course, may make the right of entry devisable.

1. waveable: Yes, at the grantors option2. rule against perpetuities: Doesnt apply because it is created in the

grantor.3. Forfeiture of the estate: Yes, exercising power of termination

always results in the transferee's forfeiture of the estate.

F. Restatement (third): several major changes to simple the classificationsof future interests

1. eliminates the historical division of future interests into 5 types(remainders, executory interests, reversions, possibilities of

reverter, and rights of entry) and simple categorizes all futureinterests as future interests. Additionally, all future interests are

alienable, devisable, and descendible if the owners death does notcause the interests termination (unless subject to valid restraint on

alienation)

2. eliminates the traditional categories of future interests asindefeasibly vested, vested subject to complete defeasance, bested

subject to open, and contingent, and replaces them with only onedistinction vested or c contingent. Contingent: if for any reason,

it might not take effect in possession or enjoyment. Further, it

provides that either a vested or a contingent future interest can besubject to open.


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3. Class gifts: in cases of future interest transferred to a class that isstill open to new members, the interest of each class member

existing from time to time is classified as subject to open. Thefuture interest may be classified either as vested or contingent.However, the interests of potential class members are always

classified as contingent.

III. Defeasable Fees: Three types* Generally

1. * it is an estate with the potential of being forfeited on thehappening all of a specified event; it is potentially infinite in

duration (if the specified event never occurs).

2. Note: all freehold and non-freehold estates can be defeasible3. note: as with the fee simple absolute, defeasible fee is freely

devisable, and inheritable and alienable during life.

A. fee simple determinable (also known as a fee simpledeterminable on special limitation)

1. Magic Words: (so long as) ( during the continuanceof) (until the board no longer uses)

2. estate automatically terminates on happening of a specified event3. the fee simple estate automatically terminates as a matter of law.

B. fee simple defeasible subject to a condition subsequent (alsoknown as a fee simple subject to a condition subsequent)

1. Magic Words:(on condition that)2. the grantor can terminate the estate on happening of an event; if

he doesn't, the estate continues3. if he does not reenter and retake the property when the event

occurs, the grantee's estate continues.4. It is freely devisable, inheritable and alienable

C. fee simple defeasible subject to an executory interest/limitation1. less common2. the possessor can be divested of possession by another grantee

(not the grantor) on the occurrence of the specified event that

may, in fact, never happen.

3. A grantor transfers a defeasible fee simple, either a determinablefee or a fee simple subject to condition subsequent, and in thesame instrument creates a future interest in a third party rather

than in himself. The future interest in the 3rd party is called anexecutory interest. Sometimes used to limit it in such a way so it

lasts only 1 generation.D. Ambiguity

4. Because courts want to avoid the forfeiture of esates, aconveyance that contains both durational language and a power of

termiaion may be construed as creating a fee simple subject to a

condition subsequent because the forfeiture is optional at thegrantrs election rather than automatic.

IV. The Trust


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A. def: an important and regularly used device in estate planning. Core isthe separation of the legal and equitable title. The trustee holds legal title

to the rust property and manages that property for the benefit of thebeneficiaries, who have the right of beneficial enjoyment of the property.Trustees powers: sell, reinvest. Beneficiaries: get the net income from

the investment, and upon termination, the trust the assets as they exist

are handed over to the designate beneficiaries, free of the trust.

B. Dual ownership: made possible because of the existing of separatecourts of law and equity. Trustee was legal owner, it is subject to orders of

an equity court, which enforces the trustees duties to the beneficiaries,who are said to hold equitable interests, that is, interests enforceable by

courts of equity. Typically beneficiaries hold equitable interest that

correspond to the legal possessory estates and future interests you have

studied.

C. trustee: is a fiduciary. Thus is subject to stringent duties in managingtrust property. Must act for exclusive benefit of the beneficiaries, and is

not permitted to benefit personally. IF breached, is subject to personal

liability by a court.

D. benefits:settlers can protect the beneficiarys interest by making theminalienable. Spendthrift trust, are possible cuse American courts holdthat the common law rules against restrains on alienation, do not apply to

beneficiaries equitable interest. So trusts can be drafted in such a way

that trust beneficiaries have no power to reach those interests to satisfybeneficiaries debts. And in a few states have enacted statues that permitsettlers to create trusts in which the settlors own interests, usually al life

estate, is immune from creditor claims.

E. Spendthrift trust: crated because of Broadway National Bank v Adams.SEE FULLE CASES.

F. Why a trust is valuable (from class): There is no proceeding with atrust/with a will its filed in court. 2.) When trust is to be distributed there

is no notice requirement beyond that set forth in the doc. IF you cut outyour kids from the will, there will be a notice, they can contest. Trust hasno notice requirement to all heirs. Some states trusts are cheaper. Not in

MN. State probate requirements matter. Trusts take effect immediately,

can be funded by a single dollar. Just have to have: trustee, grantor,beneficiary and a corpus (body of the trust a dollar). Within the trust youcan make distribution of income totally dependant on the trustees

discretion

G. Kphm C/ Gray. Restraints on the Alienation of Property1. The fallacy in the Broadway ruling, is that the objection that it

defrauds creditors isnt the only reason why equitable life estates

cant be made inalienable an free from debts.

2. True reason: that inalienable rights of property are opposed tothe fundamental principles of the common law that it is againstpublic policy that a man should have an estate to lie on, but not


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an estate to pay his debts with. Against pub. Policy to have the

benefits of wealth without the responsibilities

3. effects of of spendthrift trusts would be to form a privilegedlass, who could indulge in every speculation, could practice every

fraud, and yet, provided they kept on the safe side of the crime

law, could roll in wealth. Would become an aristocracy.

H. Notes and Questions4. John Chipman Gray denounced spendthrift trust on all scores:

precedent, policy, and logic. But now its adopted in the majority ofstates.

5. Spendthrift trust are only allowed for inherited wealth. Aperson can set it up for another but not for himself.

ii. they are permissible for others. But its mixed on if you cando it for a grantor. You ought not be able to set these up

for yourselves.

iii. Does the rule changes based on the creditor? It does.Why? Because we have competing equities.

6. perpetual/dynasty trusts: trusts that can continue to control thedisposition of wealth forever into the future. It changes the RuleAgainst Perp as it apples to certain kinds of trusts.

I. Savings clause in a trust: a perpetuities saving clause. Designed toterminate the trust, and distribute the assets at the expiration of specifiedmeasuring lives plus 21 years, if the trust has not earlier terminated.

Suppose that the testator wants to create a trust paying income to heronly child A for life, then income to As children for their lives, thendistributing the principal to As grandchildren. Example page 290. On page

23 of my notes

V. Rules Furthering Marketability by Destroying Contingent Future Interests*Relevant other rules and terms

1. Doctrine of Mergeri. present and future successive it states merge when they

are held by the same individual; the rule does not apply

when another vested estate comes between one person's

estatesii. Can be extended where the life estate is followed by a

contingent remainder and reversion.

2. Class closing rule (the rule of convenience): can save theinterest. Cuts off the possibility of new entrants to a class at theearlier of two times:

i. the natural or physiological closing of the class, thatis when the possibility of births or adoptions ends OR

ii.iii. the premature or artificial closing of the class through

the operation of the rule of convenience.

iv.


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v. Restatement: class closes once the distribution date if abeneficiary of the class gift is then entitled to distribution.

vi.vii. Exception: rule of convenience usually prevails, but the

rule of convenience yields to evidence of a contrary intent.This doesnt ever happen though.

viii.Effects: protects the distributes from receiving adefeasible interest, which is less useful._________

i. rule of construction applies to class giftsii. where there is no expression of the time that all members

of the class should take on the class closes when a member

of the class can call for distribution of a share of the classgift.

iii. Significance: no after more numbers can takeiv. rationale: to avoid dealing distribution beyond that.

Necessary and at the same time to avoid rebates in the

future.3. Issue

i. same thing as descendents. Refers to as lineal descendents(children, grandchildren, and so on down the count thatperson as their ancestor). Thus it does not include nieces

nephews in-laws and the like.

ii. Inhertianceb. Common law: if the decedent leaves

issue, they take the to exclusion of all

other kindred. Issue = descendants.c. Modern way page 196

4. Heiri. an arrow person is one entitled to inherit property by thelaws of intestate succession. Heirs inclusively determined

at the time of death.ii. There are no such things as heirs of a living person.iii. An Immediate gift to the heirs of a living person must go to

the presumptive heirs those who would take if the persondied now

iv. Spouse was not an heir at common law. Spouse was givenonly dower or courtesy in land. Today in all states, thespouse is designated as an intestate successor of someshare in the decedents land; size of the share depends on

who else survives.v. Inheritance

d. Common law:e. Modernway: first issue, then parents;

and if none, then collaterals.

5. More on inheritance generally/land transfers upon deathi. A child born out of wedlock was filius nullius, the child

of no one, and could inherit from neither mother nor father

at common law.. Today children can inherit from either.


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Adoptive children today inherit from adoptive parents, as

well as natural parents.

ii. Ancestors: By statute parents usually take as heirs if thedescendent leaves no issue.

iii. Collaterals: all persons related by blood to the decedentwho are neither descendants nor ancestors are collateralkin. Bros, sis, nephews nieces, uncles, aunts, and cousins.If a decedent leaves no spouse, no issue, no parents, the

decedents bros and sis take in all jurisdictions.

iv. Escheat transfer at death. If a person died intestatewithout any heirs, the persons real property escheated to

the overlords in feudal times. Now such property escheatsto the state where the property is located. If no next of kinfound, went to the crown back then under idea of bona

vacantia (goods without an owner). Today goes to the

state. Good without an owner. Because they are gvt they

take it.

v. Allodally transfer at death: king takes back it becausehe was the author of it. Their right to take as originalowner doesnt have to be proven. State steps it in because

state owned it first.

vi.A. The destructibility rule

1. was valid at common law but was abolished by most modern courtsand in some states by statute

2. holds that a contingent remainder must vest before or at themoment the preceding estate finished, or it is destroyed.

3. Note: although modern courts generally have abolished thedistractibility rule, indestructible contingent remainders are stillsubject to the rule against perpetuities, so they must vest, if at all,

within a life in being plus 21 years.

B. Rule in Shelleys Case1. One instrument2. Creates a freehold estate (life estate) - not non-freehold estates -

in land in A, and3. Purports to create a remainder in persons described as As heirs (or

the heirs of As body), and

4. The life estate and remainder are both legal or both equitable5. *the remainder becomes a remainder in fee simple (or fee

tail) in A. (this is all that the Rule of Shellys Case does.)

6. Merger may then come into play. There a life estate in A mergesinto a vested remainder in fee held by A if there isnt another

vested estate between the two estates.

7. Current Status: Some have used it anyway.


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8. Its a rule of law; not of constructionC. Doctrine of Worthier Title

1. Only applies to inter vivos conveyances. Not to wills or devises.2. Grantor cannot create a remainder in his own heirs if the heirs

would've taken the same estate by descent. (can either be by

remainder or executory interest)3. Its a rule of construction not a rule of law: this is important

because if the grantor expresses a contrary intention, thatintention will be followed. If it were rule of law (like the ruling

Shelley's case), it would apply regardless of the grantors intent4. Reasoning: It furthers alienability; prevents tax evasion5. Mostly abolished. Still good to know just in case old conveyances

come into play.

D. Rule Against Perpetuities1. Generally

i. no interest is good unless it must vest, if at all, not laterthan 21 years after one or more lives in being at the

creation of the interest.ii. Thus if an interest is capable of vesting more than 21 years

after life and being, it is void.

iii. The rule aplies to both real and personal property, and tothe legal and equitable interest in them.

iv. It does not apply to any interest in the grantor (reversions,possibilities of inverter, and powers of termination) nordoes it apply to vested interest (vested remainders or feesimple estate's)

2. beginning of perpetuities periodi. for inter vivos conveyances

a. when the conveyance is made (deed isdelivered).

ii. For willsa. when the testator dies

iii. irrevocable trustsa. when created

iv. revocable trustsa. when the trust becomes the revocable

(settlers death unless it is modified to

become irrevocable before that3. Clarifications

i. It doesnt require that to be valid a future interst must vestwithin a life in being plus 21 years. it requires the interestvest or fail within the perpetuities period. Thus, a

contingent remainder can be valid even if it never vests, solong as whether it best to not will be known with analyzing

being +21 years.ii. It also doesn't require better future interest become

possesses a street with being +21 years. It is about

investingnot possessingthat triggers the rule. If theinterest must vest or fail within the perpetuities., Theinterest is valid even if it isn't certain that the session will

occur within.


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iii. Interests in the same grant that do not violate the rule arevalid.

iv. To make an interest valid, it must have no possibility ofremote vesting. Thus, the interest must vest or fail withinthe period. An interest that may vest within the period may

also vest remotely, and that makes it violate the rule.

4. Exceptionsi. the gift to a charity that may be shifted to anothercharity outside the perpetuities. Is valid even though itviolates the rule against perpetuities.

ii. thus, in a grant to the lung Association as long as theproperty is used for charitable purposes; then to the savethe whales foundation, the Wales interest is valid under

the charity to charity exception even though it is capable of

vesting remotely.5. The wait-and-see doctrine

i. the doctrine determines the validity of contingent interestsotherwise voided by the rule gives perpetuities, by waiting

until the contingency actually occurs to see if the interest is

valid. Some jurisdictions have adopted the wait-and-seedoctrine as a means of reforming the road perpetuities.Limited to 90 years.

ii. Its good cuse it accepts uncertaintiy6. What might happen test

i. Common law: Applies immediately7. Types of Future interests it applies to

i. it does apply to, among others, contingent remainders,executory interests, and powers of appointment interests

that are not vested.ii. Options to purchase land that are not connected to leases

for years and

iii. powers of appointmentiv. Class gifts8. class gifts

i. the rule requires that the precise property interest of everyclass member must be determined within the perpetuitiesperiod or they all fail. This is known as the all or nothing

rule.

ii. Thus, the class must close within the perpetuities period.(No new members can enter after that); and the conditions

precedent for all class members must be determined(vesting or failing) within the perpetuities period.

9. Mechanics of the Rulei. Step 1: determine whether the future interest in question

is even subject to the rule, which applies only to interests

that are not vested at the time of the conveyance that

creates themcontingent remainders, executory interests,and class gifts.


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ii. Step 2: determine if the interest might not vest within theperpetuity period of lives in being plus 21 years. The rule

strikes down contingent interests that might vest tooremotely.

iii. *Important: it is a rule of logical proof. You must provethat a contingent interest is certain to vest or terminate nolater than 21 years after the death of some person alive atthe creation of the interest. If not, its void.

iv. Validating life: a person who will enable you to prove thatthe contingent interest will vest of fail within the life, or at

the death of that person, or with 21 years after that person

death.

a. can be anyoneb. has to be in being at or before the time at

which the interest in question was created

c. Examples: preceding life tenant, taker ortakers, anyone who can affect the identity of

the takers, anyone else who can affect eventsrelevant to the condition precedent

d. Sometimes not a person who is mention inthe instrument. The key is that to be avalidating life, a person must be someone

who can affect vesting or termination ofthe interest.

e. more than one interest: If a transfercreates more than one interest subject to therule, you must test the validity of eachinterest separately. One might be valid and

the other not.10.Options

VI. class giftsA. a group of personsB. not defined in number when the gift is madeC. with a common characteristicD. the members of which will be ascertained sometime in the futureE. the share of each member being determined by the number of people in

the group when the groups membership is ascertained

F. examples: children, heirs, descendents, grandchildren, cousins, and thelike.

G. Rules of construction relating to class gifts1. the same rules applied to testamentary and lifetime gifts. These

are testamentary

i. immediate gift to a classgift fixed in size (E. G.,Black acre, to Fred's children.)

a. If Fred as children when testator dies: theytake, but after born children do not


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b. if Fred is childless at testators death: classstays open until no new members can be

addedI. E., Fred's death.ii. Immediate gift to a classgift per capita($10,000 to

each of Freds children.)

a. If Fred has children when testator dies: theytake, but after born children do not.

b. If Fred is childless when testator dies: the giftfails.

iii. Postpone gift to a classgive fixed in size(e.g. toFred for his life, then to Fred's children, but if any of Fredschildren die before age 10, his share to the survivors.)

a. class closes upon first distribution to the classof the rule of convenience

VII. restraints on alienation: three typesA. disabling restraint

1. makes any attempt to transfer invalid, so that the interest grantedas inalienable

2. disabling restraints are always invaluable legal interests. (Theresometimes though equitable interests, is an equitable interest inthe spendthrift trust)

B. promissory restraint excellent1. makes alienation a breach of covenant, remedied by damages for

an injunction.

2. Promissory restraints are valid on life estates, void on fee simpleestate's

C. forfeiture restraints1. means that any attempted alienation results in forfeiting interest2. forfeiture restraints are valid on life estates and future interests,

and invalid unfeasible estates

Part 1, Future Interests

Documents

Transcript of Part 1, Future Interests