Future Interests (Title to own, with right to possess upon termination of present estate.)

1. Rules governing contingent remainders

1.1. Destructability of contingent remainders

1.1.1. a legal remainder in land is destroyed if it does not vest at or before termination of the preceding freehold estate

1.1.1.1. Only applied to legal interestes in land

1.1.1.2. imposes time limit on how long a remainder may be contingent

1.1.2. Abolished by the majority

1.1.2.1. By allowing, this rule would squash the intent of the grantor,

1.2. Merger Rule

1.2.1. If a person holds a vested life estate and aquires the next vested estate in the same property, the two will merge into one.

1.2.1.1. must occur at different times, in separate documents

1.3. Rule in Shelley's Case

1.3.1. When a devise or conveyance transfers a person in the same interest also transfers a remainder to that same person;'s heirs or heirs of his body, and both are equitable or lega, both considered to be held by first named for life in FSA or FT w/ heirs getting nothing

1.3.1.1. Freehold given to first transferee

1.3.1.2. Remainder limited to heirs in the same interest

1.3.1.3. Freehold and remainder of the same quality

1.3.1.4. Creates a Fee Simple absolute changing the contingent remainder to vested.

1.3.1.4.1. Exception Merger rule

1.3.2. Largely abolished

1.4. Doctrine of Worthier Title

1.4.1. Applies to conbeyances to the grantor's heirs

1.4.1.1. Changes ownership to A and then to O's heirs

1.4.2. When a conveyance occurs with remainders or executory interest to the grantor's heirs or next of kin, no future interest is created in grantor's heirs, rather the grantor retains a reversion.

1.4.2.1. Applies to real, personal, legal and equitable heirs

1.4.3. Modernly, applied to intervivos transactions.

1.4.3.1. Abolished by 30 states.

1.5. Rule Against Perpetuities

1.5.1. A future interest must vest within 21 years of the death of the last life in being to the contract

1.5.1.1. Life In Being

1.5.1.2. Vest

1.5.2. Created to encourage alienability of property

1.5.3. Does NOT apply to

1.5.3.1. All future interests in the grantor

1.5.3.2. any present possessory interest in 3rd parties

1.5.3.3. Any future interests held by 3rd parties if vested immediately upon creation.

1.5.4. Potential to invalidate is limited to interests in 3rd parties where the 3rd party cannot be ascertained or the condition precedent to vestment is present

1.5.4.1. Contingent Remainder

1.5.4.2. Executory Interests

1.5.4.3. Vested Remainder Subject to Open

1.5.5. How to know if the rule Excludes an interest

1.5.5.1. Step 1. Identify the interests given

1.5.5.2. Step 2. Determine if subject to RAP

1.5.5.2.1. For each interest, what event must occur in time to vest the interest

1.5.5.3. Step 3. Identify Lives in Being

1.5.5.3.1. All person who are alive at the time of interest creation that play a role in the vesting.

1.5.5.4. Step 4. Have child to test?

1.5.5.4.1. Person must have a child inorder to have a bestment.

1.5.5.5. Step 5. Hypothetically kill lives in being. Will the interest vest within 21 years of that date?

1.5.6. This is now the minority rule. Majority have reformed under the uniform statutory rule against perpetuitiess w/ 90 years from interest creation (wait-and-see)

2. Maintained by Grantee (3rd party)

2.1. Remainder

2.1.1. Types

2.1.1.1. Vested Remainder

2.1.1.1.1. Owned by ascertainable person or persons (can be named) And not subject to condition precedent

2.1.1.1.2. Types

2.1.1.2. Contingent Remainder

2.1.1.2.1. Owner is unascertained or right to current or future possession is subject to condition precedent

2.1.2. An interest where the grantor alots rights to a 3rd party in a life estate, fee tail or term of years.

2.1.2.1. Must be created in instrument of transfer as possessory interest

2.1.2.2. must begin subsequent to termination of prior estate naturally

2.2. Executory interests

2.2.1. an interest in a 3rd party that takes effect only when possessory interest is cut short by a condition subsequent

2.2.1.1. two forms: Shifting v Springing

2.2.1.1.1. Shifting

2.2.1.1.2. Springing

3. Maintained by the Grantor

3.1. Reversion

3.1.1. accompanies a life estate, fee tail, or term of years

3.1.1.1. Property will revert to grantor upon grantee's death.

3.1.2. follows the natural termination of an estate

3.2. Right of Entry

3.2.1. Right to enter and retake property after condition terminates the estate

3.2.1.1. Follows Fee Simple Subject to condition subsequent.

3.3. Possibility of Reverter

3.3.1. When a grantor can retake transferred property if a condition terminates the estate of a fee simple determinable

3.3.2. Spotted by fee simple determinable

4. Rights of the Future Possesor

4.1. Waste

4.1.1. What?

4.1.1.1. Occurs when the posessory life tenant permanently impairs the property's condition or value to the future interest holder's detriment,

4.1.2. Types

4.1.2.1. Voluntary

4.1.2.1.1. Life tenant actively changes property's use or condition in a way that decreases the property's value

4.1.2.2. Permissive

4.1.2.2.1. Akin to non-feasance, the life tenant fails to prevent some harm to the property

4.1.2.3. Ameliorating

4.1.2.3.1. Waste that benefits the interests of the remainderman

4.1.3. Open Mines doctrine

4.1.3.1. Rule to natural resoucres

4.1.3.1.1. A life tenant may mine and remove minerals if grantor opened the mines or began the mining and removed before he granted the life estate

4.1.4. Economic wastes

4.1.4.1. When the income from the property is insufficent to pay the expenses the life tenant has duty to pay

4.1.4.1.1. Maintenance

4.1.4.1.2. Taxes

4.1.4.1.3. Interest on mortgages

4.1.4.1.4. In some cases Insurance.