2. ESTATES & FUTURE INTERESTS THE SHADOW OF THE PAST:

3. SPOTBUTCH LEARN THEIR NAMES

6. RECURRING ISSUES Grantor’s Intent v. Dead Hand Control

7. RECURRING ISSUES Grantor’s Intent v. Dead Hand Control Grantor’s Intent v. Alienability

8. PRESENT POSSESSORY ESTATES

9. Present v. Future (Tenant v. Landlord)

10. PRESENT POSSESSORY ESTATES Present v. Future Possessory v. Non-Possessory: (Tenant v. Trust Beneficiary)

11. FEE SIMPLE ABSOLUTE

12. Right to possess and use forever FEE SIMPLE ABSOLUTE

13. Right to possess and use forever Right to transfer all present and future rights (inheritable/devisable) FEE SIMPLE ABSOLUTE

14. Right to possess and use forever Right to transfer all present and future rights (inheritable/devisable) Right to liquidate assets FEE SIMPLE ABSOLUTE

15. Right to possess and use forever Right to transfer all present and future rights (inheritable/devisable) Right to liquidate assets Default estate today FEE SIMPLE ABSOLUTE

16. Lloyd grants Redacre “to Mimi and her heirs.”

17. FEE SIMPLE ABSOLUTE Lloyd grants Redacre “to Mimi and her heirs.” “WORDS OF PURCHASE”: Who Gets the Estate?

18. FEE SIMPLE ABSOLUTE Lloyd grants Redacre “to Mimi and her heirs.” WORDS OF PURCHASE: WHO GETS THE ESTATE? “WORDS OF LIMITATION”: What Estate do they Get?

19. RELEVANT TIME FRAMES “ At Common Law ”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800)

20. RELEVANT TIME FRAMES “At Common Law”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800) “Today”: Dates after modern streamlining of the rules. (e.g., 1950-present)

21. RELEVANT TIME FRAMES “At Common Law”: Dates prior to modern streamlining of the rules. (e.g., 1600-1800) “Today”: Dates after modern streamlining of the rules. (e.g., 1950-present) Precise line between varies from state to state and from issue to issue, so you don’t need to know where it is.

22. FINITE ESTATES TERM OF YEARS LIFE ESTATE FEE TAIL

23. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS LIFE ESTATE: FEE TAIL:

24. TERM OF YEARS Finite period specified Can alienate, devise, inherit (until term ends) Need explicit time language to create: (“for 99 years”)

25. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS LIFE ESTATE: TO BEA FOR LIFE FEE TAIL:

26. ISSUE v. HEIRS Issue = Direct Descendants (Children, Grandchildren, etc.)

27. ISSUE v. HEIRS Issue = Direct Descendants Heirs = People who inherit your property at the time of your death under the relevant Intestacy Statute

28. ISSUE v. HEIRS Issue = Direct Descendants Heirs = People who inherit your property at the time of your death under the relevant Intestacy Statute You cannot have heirs until the moment of death

29. FINITE ESTATES TERM OF YEARS: TO ANN FOR 10 YEARS LIFE ESTATE:TO BEA FOR LIFE FEE TAIL: TO CAL & THE HEIRS OF HIS BODY

31. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REVERSION REMAINDER

32. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REVERSION Future interest retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires.

33. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REVERSION Future interest retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires. E.g.: Ceci conveys Greenacre “To Didi for life.” Ceci retains a reversion.

34. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REMAINDER Future interest in a third party that follows naturally upon the termination of a finite estate. It is always expressly conveyed by the grantor.

35. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REMAINDER Future interest in a third party that follows naturally upon the termination of a finite estate. It is always expressly conveyed by the grantor. E.g.: Fifi grants Tanacre: “To Gigi for life, then to J.J.” J.J. has a remainder. Fifi retains nothing.

36. Right to possess and use forever Right to transfer all present and future rights (inheritable/devisable) Right to liquidate assets Default estate today FEE SIMPLE ABSOLUTE

37. Right to possess and use only for lifetime of original grantee LIFE ESTATE

38. Right to possess and use only for lifetime of original grantee Right to transfer only rights for lifetime of original grantee (not inheritable/ devisable) LIFE ESTATE

39. What if a living person transfers a life estate? Opal conveys Gemacre “to Ruby for life”, retaining a reversion herself. Ruby then conveys her life estate “to Esmeralda.” What does Esmeralda have?

40. What if a living person transfers a life estate? Opal conveys Gemacre “to Ruby for life”, retaining a reversion herself. Ruby then conveys her life estate “to Esmeralda.” Esmeralda has a life estate pur autre vie (for the life of another). The duration of the interest is still measured by Ruby’s life.

41. Right to possess and use only for lifetime of original grantee Right to transfer only rights for lifetime of original grantee (not inheritable/devisable) Right only to present income; can’t liquidate capital (Doctrine of Waste) LIFE ESTATE

42. Right to possess and use only for lifetime of original grantee Right to transfer only rights for lifetime of original grantee (not inheritable/devisable) Right only to present income; can’t liquidate capital Default Estate at Common Law LIFE ESTATE

43. DEFAULT ESTATE (“To Bill.”) Common Law: Default was Life Estate Bill gets Life Estate Grantor keeps Reversion

44. DEFAULT ESTATE (“To Bill.”) Common Law: Default was Life Estate – Bill gets Life Estate – Grantor keeps Reversion Today: Default is Fee Simple –Bill gets Fee Simple Absolute –Grantor keeps nothing

45. DEFEASIBLE FEES

46. DEFEASIBLE FEES Restatement Terms FEE SIMPLE DETERMINABLE FEE SIMPLE ON CONDITION SUBSEQUENT FEE SIMPLE ON EXECUTORY LIMITATION

47. FEE SIMPLE DETERMINABLE OPERATION: Self-Executing

48. FEE SIMPLE DETERMINABLE OPERATION: Self-Executing KEY LANGUAGE: “So long as”, “While”, “Until”

49. FEE SIMPLE DETERMINABLE OPERATION: Self-Executing KEY LANGUAGE: “So long as”, “While”, “Until” FUTURE INTEREST: Possibility of Reverter (in GRANTOR)

50. FEE SIMPLE DETERMINABLE OPERATION: Self-Executing KEY LANGUAGE: “So long as”, “While”, “Until” FUTURE INTEREST: Possibility of Reverter EXAMPLE: To Estelle and her heirs so long as asparagus is not grown on the property.

52. FEE SIMPLE ON CONDITION SUBSEQUENT OPERATION: Grantor must act

53. FEE SIMPLE ON CONDITION SUBSEQUENT OPERATION: Grantor must act KEY LANGUAGE: –“But if”, “provided that if”, “on condition that if” PLUS –“O may [re]enter and [re]claim the land”

54. FEE SIMPLE ON CONDITION SUBSEQUENT OPERATION: Grantor must act KEY LANGUAGE: –“But if”, “provided that if”, “on condition that if” PLUS –“O may [re]enter and [re]claim the land” FUTURE INTEREST: Right of [Re]Entry (in GRANTOR)

55. FEE SIMPLE ON CONDITION SUBSEQUENT OPERATION: Grantor must act KEY LANGUAGE: –“But if”, “provided that if”, “on condition that if” PLUS –“O may [re]enter and [re]claim the land” FUTURE INTEREST: Right of [Re]Entry EXAMPLE: To Estelle and her heirs, but if asparagus is grown on the property, I can reenter and claim the land

57. FEE SIMPLE ON EXECUTORY LIMITATION OPERATION: Either self-executing or grantee has to act.

58. FEE SIMPLE ON EXECUTORY LIMITATION OPERATION: Either self-executing or grantee has to act. KEY LANGUAGE: Creates interest in 2d grantee if condition violated

59. FEE SIMPLE ON EXECUTORY LIMITATION OPERATION: Either self-executing or grantee has to act. KEY LANGUAGE: Creates interest in 2d grantee if condition violated FUTURE INTEREST: Executory Interest (in 2d grantee)

60. FEE SIMPLE ON EXECUTORY LIMITATION: EXAMPLES To Estelle and her heirs so long as asparagus is not grown on the property, otherwise to Bob

61. FEE SIMPLE ON EXECUTORY LIMITATION: EXAMPLES To Estelle and her heirs so long as asparagus is not grown on the property, otherwise to Bob To Estelle and her heirs, but if asparagus is grown on the property, Bob can reenter and claim the land

62. DEFEASIBLE FEES Restatement Terms FEE SIMPLE DETERMINABLE (to grantor; automatic) F.S. ON CONDITION SUBSEQUENT (to grantor; must act) F.S. ON EXECUTORY LIMITATION (any to grantee)

63. VESTED v. CONTINGENT REMAINDERS

64. FUTURE INTERESTS THAT FOLLOW FINITE ESTATES REMAINDER Future interest in a third party that follows naturally upon the termination of a finite estate. It is always expressly conveyed by the grantor.

65. VESTED REMAINDER Grantee is living ascertainable person (Presumed if granted to a named individual)

66. VESTED REMAINDER Grantee is living ascertainable person AND Clause creating the remainder contains no condition on grantee taking the property except expiration of prior estate

67. VESTED REMAINDER Grantee is living ascertainable person AND Clause creating the remainder contains no condition on grantee taking the property except expiration of prior estate Example: To Aaron for life, then to Oona and her heirs.

68. CONTINGENT REMAINDER Grantee is presently unborn or unascertainable *OR* Clause creating the remainder contains a condition on grantee taking the property

69. CONTINGENT REMAINDER: EXAMPLES “To Fred for life, then to Fred’s firstborn child.” Fred presently has no children. (Not born)

70. Suppose Fred has a Child…

71. CONTINGENT REMAINDER: EXAMPLES “To Fred for life, then to Fred’s firstborn child.” Fred presently has no children. “ To Fred for life, then to Fred’s oldest child living at Fred’s death.” (not ascertainable)

72. CONTINGENT REMAINDER: EXAMPLES “To Fred for life, then to Fred’s firstborn child.” Fred presently has no children. “To Fred for life, then to Fred’s oldest child living at Fred’s death.” “ To Fred for life, then to Wilma and her heirs if Dino survives Fred. (condition precedent)

74. ANALOGY Vested Remainder  Theater Ticket Contingent Remainder  Lottery Ticket

75. Life Estate + Vested Remainder To Fred for Life, then to Wilma and her heirs

77. Life Estate + Contingent Remainder Barney “to Fred for Life, then to Wilma and her heirs if Dino survives Fred.”

78. Life Estate + Contingent Remainder Barney “to Fred for Life then to Wilma and her heirs if Dino survives Fred.” Barney retains a reversion.

80. REMAINDERS “IN …” : “To Fred for life, then to Wilma for life.” Wilma has a vested remainder in life estate “To Fred for life, then to Wilma and her heirs if Dino survives Wilma. Wilma has a contingent remainder in fee simple