FUTURE INTEREST
FUTURE INTERESTS IN TRANSFEROR
♦ REVERSION If O, owning a fee simple, creates a fee tail, life estate, or a term of years, and does not at the same time convey a vested remainder, then O retains a reversion. ♦ POSSIBILITY OF REVERTER May only be retained by transferor of his heirs; may be transferred inter vivos or by will. ♦ RIGHT OF ENTRY May only be retained by transferor of his heirs; may be transferred inter vivos or by will.
IN TRANSFEREE
♦ REMAINDERS Transfer occurs either at expiration of precedent estate.
VESTED REMAINDER: now ready to become possessory. NO REVERSION! Given to an ascertained person Not subject to condition precedent. Types: 1. Vested remainder in FSA 2. Vested remainder subject to open—not all members of class of future interest are determined. 3. Vested remainder subject to complete divestment—remainder can be taken away entirely; FOLLOWED BY EXECUTORY INTEREST. CONTINGENT REMAINDER: not now ready to become possessory. ALWAYS HAS REVERSION! IF FOLLOWED BY ANOTHER FUTURE INTEREST, SECOND FUTURE INTEREST IS AN ALTERNATIVE CONTIGENT REMAINDER! Given to an unascertained person Contingent upon some event occurring (condition precedent). Types: 1. Contingent remainder; 2. Alternative contingent remainder. Unlike vested remaindermen, contingent remaindermen cannot sue for waste.
♦ EXECUTORY INTEREST: must be created EXPRESSLY in transferee NOT GRANTOR.
FUTURE INTEREST Future interest in transferee that must divest or cut short some interest in another transferee or the transferor.