State Limitations

Question 1

Remainders

Answer 1

A remainder is a future interest created in a transferee (not back to the grantor that may become a present /possessory estate upon the natural termination of a preceding estate created in the same instrument

Question 2

a remainder can only follow a

Answer 2

life estate, a fee estate, a fee tail, or a term of years because it cannot cit short the preceding estate

Question 3

remainders are either

Answer 3

vested or contingent

Question 4

vested remainder requirements

Answer 4

1) created in a living ascertainable person
2) not subject to any condition precedent (aka an event other than the natural termination of the prior estate that must occur before the remainder can become a possessory estate)

Question 5

indefeasibly vested remainders

Answer 5

• The identity of the holder of the vested remainder is ascertained and there are no conditions subsequent attached
  
  • But the occurrence of a specified condition could subsequently extinguish the remainder
    
    • Indefeasible - there are no further conditions subsequent that could divest the remainder

Question 6

vested remainder subject to defeasance

Answer 6

The holder of the vested remainder is ascertainable and there are no conditions precedent to satisfy but the occurrence of a specified condition could subsequently extinguish the remainder

Question 7

Vested Subject to Open

Answer 7

• With a vested remainder subject to open the holder of the remainder is a class, but additional members not yet ascertained may be added
• Partial defeasance
• While these class gifts are generally thought of as vested, they may possibly be reduced or increased at least in the sense of how much they will take and with whom they will share

Question 8

Contingent Remainder requirements

Answer 8

• A remainder is contingent if
  
  • The person is not ascertainable or
    
    • The remainder is subject to a condition precedent

Question 9

Executory interest

Answer 9

• Like a remainder, an executory interest is set up in a 3rd party transferee (not the grantor or grantor’s successor)
• But unlike a remainder, an executory interest cuts short (divests) the preceding estate. It does not wait for the natural termination of the prior estate

Question 10

two types of executory interests

Answer 10

shifting and springing interests

Question 11

shifting executory interest

Answer 11

if a condition happens, then the interest springs to the next party (does not await natural termination)
A -> B and his heirs on the condition that liquor is not sold on the premises during the lifetime of B; and if it is, then to C and his heirs

Question 12

springing executory interest

Answer 12

A springing executory interest cuts short the interest of the grantee or grantee’s successor

Question 13

state limitations on private power (limitations by the owner)

Answer 13

• Property owners can control the transfer of their property by selecting the receiving person or imposing restrictions on future ones or both
• Qualified transfers and future interests

Question 14

state limitations on private power (imposed by law re the validity of the estate transfer)

Answer 14

includes two categories of public policy
- First, policies related directly to the use of property - the promotion of alienability; the need for certainty in property dealings; the rule against perpetuities
- The second category a larger spectrum of social policy considerations (human rights, international law

Question 15

landowners can use their rights of ownership to restrict

Answer 15

what their successor in title can do with the land or restrict their potential activities for valid or invalid conditions

Question 16

the effects of invalidity

Answer 16

if one party argues the condition is invalid, different consequences ensue depending upon whether is a condition subsequent or condition precedent

Question 17

invalidity if a condition subsequent

Answer 17

the condition will drop off and the estate is still granted

Question 18

invalidity if a condition precedent

Answer 18

the entire gift fails

Question 19

five ways a condition may be found void

Answer 19

• Condition is void for uncertainty (vague) (focus on this one)
• The condition is void for being a restraint on alienation (the courts are hesitant to do this)
• The condition is void for being against public policy (focus on this one)
• The condition is void because of remoteness - the rule against perpetuities (RAP)
• The condition is void for being repugnant (also rare)

Question 20

evidential uncertainty for invalidity

Answer 20

condition imposed before or after vesting; several people may legitimately claim to be the named donee (this wasn’t covered in class)

Question 21

conceptual uncertainty for invalidity

Answer 21

it is not clear what the person receiving the grant has to do to obtain position. the standard of clarity to be applied in giving mean to conditions of acquisition (precedent or subsequent)

Question 22

what degree of certainty is required for a condition precedent

Answer 22

one has to know with certainty whether a particular claimant has met the condition. IT is unclear how to get the grant

Question 23

what degree of certainty is required for a condition subsequent

Answer 23

• one must be able to state with certainty what events will give rise to the grantors right of re-entry and what will cause the grantees interest to revert to the grantor
• Unclear how they become divested, or how they lose the grant

Question 24

when unclear courts prefer to consider the will as a condition (Tepper’s Will Trusts)

Answer 24

subsequent, unless a condition precedent is very clear (Tepper’s Will Trusts)

Question 25

t/f the intention of the testator plays a crucial role in identifying the qualification of a condition (Tepper's Will Trusts)

Answer 25

true

Question 26

test for condition subsequent (vested interest) (Tepper's Will Trusts)

Answer 26

- "where a vested estate is to be defeated by a subsequent condition, that condition must be such that the court can see from the beginning, precisely and distinctly, what needs to be met to keep the estate" (Clavering v Eillison) - This is a strict test. There must not be room for doubt. This is because there could be a lot at stake (home, income stream, etc.). Therefore, it must be 100% clear. - Courts do not like to see gifts taken away where the interest is already vested.

Question 27

test for a condition precedent (Teppers)

Answer 27

The test of certainty is satisfied if the condition is sufficiently clear so that the grantee is able to ascertain whether he/she did or did not come within the language of the condition. - lower bar, so a party will receive the grant - if the condition is void the entire gift fails

Question 28

Meade Ratio

Answer 28

if will is uncertain, it will be voided

Question 29

Leonard Foundation facts

Answer 29

Wells created a scholarship for white protestant men on the basis that they were supreme

Question 30

Leonard Foundation Ratio

Answer 30

- Charitable trusts that give sums of money for purposes that fall into the public sphere must not violate public policy or these violating conditions will be void. - Preventing discrimination is in line with public policy. - Public policy does not govern private family matters in wills.

Question 31

Cy-Pres Doctrine definition

Answer 31

allows a court to amend a legal document to enforce it as near as possible to the original intent of the instrument, in situations where it becomes impossible, impracticable, or illegal to enforce it under its original terms