Property Law – Fall 2007 (Prof. Miller) Present Estates and Future Interests Problems On pages 561-62 of the casebook, the authors present a series of problems calling for analysis of the resulting present estates and future interests. In class, we talked about Problems ## 1-6. Below are my analyses of Problems ## 7- 12. I am, of course, happy to discuss these analyses. Problem 7 - "O grants Blackacre 'to A for life, then to B for life, then to C.'" (1) A has a life estate absolute. B has a contingent remainder in life estate absolute (because there is an implied condition precedent that B survive A). C has an absolutely vested remainder in fee simple asbsolute. (C's interest is a remainder, not an executory limitation, because it vests upon the natural end of a preceding life estate (rather than cutting it short upon a stated condition).) O has nothing. (2) What happens if C dies before A, or after A but before B? C's property interest passes to C's heir, and the remainder goes to that party. Problem 8 - "O grants Blackacre 'to A for life, then to B for life, then to B's children who survive him.'" A has a life estate absolute. B has a contingent remainder in life estate absolute. B's children also have contingent remainders (in fee simple absolute), and they are contingent (rather than vested) because there's an implied condition precedent that one or more of them survives B. O has a reversion in fee simple absolute, which will vest in possession only if B dies with no surviving children. Problem 9 - "O grants Blackacre 'to Springfield Hospital as long as it is used for the care of patients, then to Springfield Animal Clinic.'" (1) Springfield Hospital has a fee simple subject to executory limitation. Springfield Animal Clinic has an executory interest in fee simple absolute. O has nothing. (2) There's a lurking Perpetuities problem, given that the Animal Clinic's interest may never vest at all, or may vest long after any life in being at the time of the grant, e.g., in 300 years. Two things: First, there are decisions recognizing an exception to the Rule Against Perpetuities where all the grants are to charitable institutions. Second, the Perpetuities problem is easily avoided by breaking the grant into two separate grants, the latter of which gives O's possibility of reverter to the Animal Clinic (which is left over after a fee simple determinable grant to the Hospital). Problem 10 - "O grants Blackacre 'to A for life, then to A's husband if he survives her.'" A has a life estate absolute. A's husband, whoever that turns out to be, has a contingent remainder. O has a reversion subject to executory limitation, and it will fail if A is survived by a husband. Problem 11 - "O grants Blackacre 'to A for life, then, if B passes the bar, to B and his heirs as long as he remains a member in good standing of the bar.' B is a student in law school." A has a life estate absolute. B has a contingent remainder in fee simple deter-
minable. O has a reversion (which turns on whether B ever passes the bar) and a possibility of reverter (which, once B passes the bar, turns on whether B remains a member in good standing). If B passes the bar, B's contingent remainder vests in interest; it vests in possession only once A dies. If A dies before B passes the bar, O will have a reversion in fee simple subject to executory limitation (and the possibility of reverter), and B will have an executory interest in fee simple determinable that, once again, turns on whether B passes the bar. Problem 12 - "Bequest by O of '$100,000 to A, to be paid when A reaches age twentyone.'" O's successor holds a fee simple subject to executory limitation in the cash, subject to A's executory interest. If A dies before reaching 21, O's fee simple interest becomes indefeasible.