through merger and contingent remainder has not vested, then contingent remainder is destroyedCommonly 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 78Example:oO to A for life, then to B and her heirs if she graduates from law schoolA has life estateB has contingent remainder in FSO has reversionIf A transfers her life estate to O, O would have successive vested interest. Therefore, if B had not vestedhis contingent remainder (graduating from law school), then B’s contingent remainder is destroyedOR, if O transfers his reversion to A, A would have successive vested interest. Therefore, if B had not vestedhis contingent remainder, B’s contingent remainder is destroyedPremature Termination and Alternative Contingent Remainders (AltCR)Focus on how preceding finite estate ends when analyzing AltCRoPrematurely(merger, renunciation, forfeiture)If 1st CR has vested 1stCR becomes possessory; AltCR and reversion are destroyedIf 1st CR not vested Reversion becomes possessory; both CRs are destroyed oNaturally(death of life tenant)If 1stCR has vested 1stCR becomes possessory; AltCR and reversion are destroyedIf 1stCR not vested AltCR becomes possessory; 1stCR is destroyed under destructibility of CRs, reversion is destroyedNote: When preceding LE ends naturally, remainder is destroyed (and one of the CRs will become possessory)First Contingent Remainder NOT in Fee Simple13
oIf conveyance transfers 1stCR in finite estate andVR in FE, there is no AltCR and thusno default reversionExample: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 heirsoState the title:A – life estateB – contingent remainder in life estateC – vested remainder in FSO has no default reversion*Rule: When last express grantee holds vested remainder in FS, grantor has no possibility of reversionoIf 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 FSoIf 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 possessoryoVested Remainders: Transferability, Devisability, InheritabilityVRs are freely transferrable, devisable, and inheritable to the extent permitted by express terms of conveyance and/or nature of possessory duration of future estateEx: 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 permittedTransferability, Devisability Inheritability – Common Law SUMMARYPossessory Estate
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Life estate, Real property law, Future interest, Finite Estates