100%(1)1 out of 1 people found this document helpful
This preview shows page 17 - 19 out of 31 pages.
Interest and remainder must be created in one instrument(3)Example: O to A for life, then to A’s heirs.(a)Rule takes future interest from A’s heirs and gives it to A.(b) A has not two interests:(i)Life estate and(ii) Remainder in fee simple(c)Through merger, state of title is a fee simple absolute. ii)Doctrine of Worthier Title (1) Definition: if a grantor creates a remainder or an executory interest in his own heirs, the grantor retains a future interest in himself rather than creating a future interest in those heirs. (2) Under certain circumstances, rule takes remainder away from grantor’s heirs and gives it to grantor.(3) Example: O to A for life, remainder to O’s heirs.(a)When O dies, O’s heirs have remainder and will take a fee simple absolute upon A’s death not through inheritance. (b) Doctrine destroys the remainder conveyed to O’s heirs, forcing them to take the land through inheritance rather than remainder.(c)Change: O to A for life. (i)O has reversion which will pass by inheritance to O’s heirs and therefore they will be required to pay inheritance or estate taxes.(4) Does not apply to children or a different person’s heirsiii) Doctrine of Destructibility of Contingent Remainders(1) Definition: any contingent remainder that has not vested at the termination of the preceding freehold estate is destroyed.(2) Concept: if preceding estate ends when remainder is still contingent, forever destroyed(3) Example: O to A for life, remainder to B and his heirs if B enrolls in college.(a)If B has not enrolled in college, the condition precedent has not been met and B’s remainder is contingent.(b) If A dies before B enrolls, the remainder is immediately destroyed because B is not ready and able to take present possession at that moment.(c)What happens? O gets it through reversion. 17
Property I Law- Merged Outline(4) Special Issue: Unborn or Unascertainable Class? (a)Two possibilities: Example (O “to A for life, then to the children or heirs of B and their heirs.” B is alive, but no children of B have been born at the time of A’s death.) *key interests are contingent. (i)If jurisdiction follows Doctrine: the contingent remainder held by the classis destroyed immediately.1.Interest is contingent because upon A’s death, not one class member who is able to take present possession of the property. 2.Once remainder destroyed, property goes to original owner through a reversion. (O)(ii) If jurisdiction abolished doctrine:1.Upon A’s death, O gets present possession based on the reversion retained, but O’s interest is subject to a springing executory interest that is held by members of the (still unborn or unascertainable class)a.Because none of the class members were born before A died, it does not close after one is born. All of B’s children born after A dies are included (and will have a share).