This document provides a checklist for classifying present and future interests in property. It outlines steps to determine when a grant becomes effective, classify the present and future interests, and determine the type of first remainder and any subsequent future interests. The checklist examines factors such as whether the grant is made during the grantor's lifetime or under a will, who holds the present and future interests, and whether interests are vested, contingent, or subject to conditions.
This document provides a checklist for classifying present and future interests in property. It outlines steps to determine when a grant becomes effective, classify the present and future interests, and determine the type of first remainder and any subsequent future interests. The checklist examines factors such as whether the grant is made during the grantor's lifetime or under a will, who holds the present and future interests, and whether interests are vested, contingent, or subject to conditions.
This document provides a checklist for classifying present and future interests in property. It outlines steps to determine when a grant becomes effective, classify the present and future interests, and determine the type of first remainder and any subsequent future interests. The checklist examines factors such as whether the grant is made during the grantor's lifetime or under a will, who holds the present and future interests, and whether interests are vested, contingent, or subject to conditions.
1. Grant made while grantor is alive? Classified immediately, or at Point in time when transfer is irrevocable 2. Grant made under a will: Classified as of moment of death B. Classify the Present and Future Interest 1. Present Defeasible fee Simple Held by A; Future Interest Held by Third Party B: i. A holds a FSSEI; B holds a shifting EI. Go to D.1. 2. Present Defeasible Fee Simple held by A; Future Interest Held by Grantor O (express or implied) i. FSD and P/R 1. Passage of time, Os retained interest is automatic ii. FSSCS and R/E 1. Words indicating condition, limitation , or restriction 2. O must act to retake possession 3. Present Life Estate or Term of Years held by A; Future Interest (Express or Implied) Held by Grantor O i. As Life Estate / Term of Years Can Only Terminate Naturally: 1. A: ppi/ LE or TY O: REV ii. As Life Estate / Term of Years Can be cut off Shirt of Natural Termination 1. A: determinable L/E or TY O: Rev 4. Present Life Estate, Term of Years held by A; Future Interest Held by Third Party B i. As LE/TY can only Terminate Naturally: 1. A: LE/TY B: Remainder, have to see which one ii. As LE/ TY can be cut off short of a Natural Termination: 1. A: determinable L/E B: EI 5. Present Interest held by Grantor O; Future Interest Held by B i. O: FSSEI B: EI C. Determine the Type of the First Remainder and Any Subsequent Future Interests : 1. First Remainder is Held by and Individual: i. Individual is Born, Alive, Ascertainable. 1. If No: CR ii. Precondition that Must be Satisfied before the Individual Can Take Present Possession of the Property: 1. If Yes, but Precondition is Not Satisfied: CR 2. If Yes: but the Precondition is Satisfied or No Precondition: Vested Remainder a. Can the Individuals Vested Remainder be Divested by condition subsequent? i. Yes: VRSTD VS 2. First Remainder is Held by a Class of Persons