through merger and contingent remainder has not vested then contingent

Through merger and contingent remainder has not

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through merger and contingent remainder has not vested, then contingent remainder is destroyed Commonly occurs when life tenant transfers his life estate to grantor (so grantor holds successive vested interest), OR when grantor transfers his reversion to life tenant (so life tenant holds successive vested interest) – See Diagram 7, pg 78 Example: o O to A for life, then to B and her heirs if she graduates from law school A has life estate B has contingent remainder in FS O has reversion If A transfers her life estate to O, O would have successive vested interest. Therefore, if B had not vested his contingent remainder (graduating from law school), then B’s contingent remainder is destroyed OR, if O transfers his reversion to A, A would have successive vested interest. Therefore, if B had not vested his contingent remainder, B’s contingent remainder is destroyed Premature Termination and Alternative Contingent Remainders (AltCR) Focus on how preceding finite estate ends when analyzing AltCR o Prematurely (merger, renunciation, forfeiture) If 1st CR has vested 1 st CR becomes possessory; AltCR and reversion are destroyed If 1st CR not vested Reversion becomes possessory ; both CRs are destroyed o Naturally (death of life tenant) If 1 st CR has vested 1 st CR becomes possessory; AltCR and reversion are destroyed If 1 st CR not vested AltCR becomes possessory ; 1 st CR is destroyed under destructibility of CRs, reversion is destroyed Note: When preceding LE ends naturally, remainder is destroyed (and one of the CRs will become possessory) First Contingent Remainder NOT in Fee Simple 13
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o If conveyance transfers 1 st CR in finite estate and VR in FE, there is no AltCR and thus no default reversion Example: O to A for life, then to B for life if she graduates from law school, but if B fails to graduate from law school, then to C and her heirs o State the title: A – life estate B – contingent remainder in life estate C – vested remainder in FS O has no default reversion *Rule: When last express grantee holds vested remainder in FS, grantor has no possibility of reversion o If B vests remainder during A’s lifetime (graduates from law school), B would acquire life estate at A’s death and C would still have VR in FS o If B does not vest remainder during A’s lifetime (does not graduate from law school), B’s CR would be destroyed and C’s VR in FS would become possessory o Vested Remainders: Transferability, Devisability, Inheritability VRs are freely transferrable, devisable, and inheritable to the extent permitted by express terms of conveyance and/or nature of possessory duration of future estate Ex: If B has vested remainder in life estate, B’s interest terminates upon her death. Therefore, B’s interest is not devisable or inheritable (although it may have been transferred during her lifetime) Common law view : CRs not transferrable but are inheritable and devisable to extent permitted Transferability, Devisability Inheritability – Common Law SUMMARY Possessory Estate
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  • Fall '16
  • Life estate, Real property law, Future interest, Finite Estates

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