Future Interests

Question 1

When are the interests created for:

1) Inter vivos trust
2) Will/Testamentary Trust
3) Revokable Inter vivos trust

Answer 1

• Inter-vivos
		○ Interest created at time of delivery of property
	• Will/Testamentary
		○ @ death
	• Revocable Inter-vivos trust

@ death

Question 2

Vested

Answer 2

1. Ascertainable beneficiary

2. No conditions precedent

Question 3

Remainder

Answer 3

You get a remainder if your interest will vest

Question 4

4 types of Remainders

Answer 4

1. Absolutely vested
   
   2. Vested remainder subject to condition subsequent
   3. Divested subject to open
      a. Class gifts
      i. Vested when people are identified
   4. Contingent

Question 5

RAP

Answer 5

No interest is valid unless it must vest, if at all, no later than 21 years of some life in being present at creation of the interest

Tip: We just want to know whether or not the requirement can be fulfilled within 21 years of the death of the validating life

Question 6

RAP only applies to:

Answer 6

• Contingent remainders
• Vested remainders subject to open
• Executory interests(cuts short preceeding estate)

Question 7

Special RAP Rules for Application

Answer 7

-Remainder never follows a fee
-Remainders follow Life Estate
-Any living person can reproduce
-Fetus is a child
-Living people don’t have heirs (heirs apparent maybe because we don’t know what itll be like when T dies)
-If age is a requirement:
• Those who are living with and interest - valid
• Those who are not living - wont be valid
-class gifts - bad for one; bad for all
-Rule of Convenience

Question 8

Validating life

Answer 8

Who’s life we measure the 21 years against

Question 9

Rule of Convenience

Answer 9

○ Class closes when:

- Someone qualifies to take
     - Gift is available for distribution

Question 10

Types of Executory Interest

Answer 10

• Shifting

- Springing