Right to possess and use forever

1

FEE SIMPLE ABSOLUTE

• Right to possess and use forever
• Right to transfer all present and future rights
  (inheritable/devisable)
• Right to liquidate assets
• Default estate today

2

LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee

3

LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/ devisable)

4
What if a living person transfers a life estate?

• Opal conveys Gemacre to Ruby for life, retaining
  a reversion herself.
• Ruby then conveys her life estate to Esmeralda.
• What does Esmeralda have?

5
What if a living person transfers a life estate?

• Opal conveys Gemacre to Ruby for life, retaining
  a reversion herself.
• Ruby then conveys her life estate to Esmeralda.
• Esmeralda has a life estate pur autre vie (for
  the life of another). The duration of the
  interest is still measured by Rubys life.

6

LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/devisable)
• Right only to present income cant liquidate
  capital (Doctrine of Waste)

7

LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/devisable)
• Right only to present income cant liquidate
  capital
• Default Estate at Common Law

8
DEFAULT ESTATE (To Bill.)

• Common Law Default was Life Estate
• Bill gets Life Estate
• Grantor keeps Reversion

9
DEFAULT ESTATE (To Bill.)

• Common Law Default was Life Estate
• Bill gets Life Estate
• Grantor keeps Reversion
• Today Default is Fee Simple
• Bill gets Fee Simple Absolute
• Grantor keeps nothing

10
DEFEASIBLE FEES
11
DEFEASIBLE FEESRestatement Terms

• FEE SIMPLE DETERMINABLE
• FEE SIMPLE ON CONDITION SUBSEQUENT
• FEE SIMPLE ON EXECUTORY LIMITATION

12
FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing

13
FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until

14
FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until
• FUTURE INTEREST Possibility of Reverter (in
  GRANTOR)

15
FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until
• FUTURE INTEREST Possibility of Reverter
• EXAMPLE To Estelle and her heirs so long as
  asparagus is not grown on the property.

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FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act

18
FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land

19
FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land
• FUTURE INTEREST Right of ReEntry (in
  GRANTOR)

20
FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land
• FUTURE INTEREST Right of ReEntry
• EXAMPLE To Estelle and her heirs, but if
  asparagus is grown on the property, I can reenter
  and claim the land

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FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.

23
FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.
• KEY LANGUAGE Creates interest in 2d grantee if
  condition violated

24
FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.
• KEY LANGUAGE Creates interest in 2d grantee if
  condition violated
• FUTURE INTEREST Executory Interest (in 2d
  grantee)

25
FEE SIMPLE ON EXECUTORY LIMITATIONEXAMPLES

• To Estelle and her heirs so long as asparagus is
  not grown on the property, otherwise to Bob

26
FEE SIMPLE ON EXECUTORY LIMITATIONEXAMPLES

• To Estelle and her heirs so long as asparagus is
  not grown on the property, otherwise to Bob
• To Estelle and her heirs, but if asparagus is
  grown on the property, Bob can reenter and claim
  the land

27
DEFEASIBLE FEESRestatement Terms

• FEE SIMPLE DETERMINABLE (to grantor
  automatic)
• F.S. ON CONDITION SUBSEQUENT (to grantor must
  act)
• F.S. ON EXECUTORY LIMITATION (any to grantee)

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WHITE v. BROWN
29
LED ZEPPELIN

• Discussion Questions E1-E4

30
DQE1 The White majority states that the free
alienation of property is one of the most
significant incidents of fee ownership. Why is
it significant?
31
DQE2The White majority complains that the words
chosen by the testatrix are not specific enough
to clearly state her intent."
32
What do you think Jessie Lides intent is?

• I wish Evelyn White to have my home to live in
  and not to be sold. I also leave my personal
  property to Sandra White Perry. My house is not
  to be sold.

33
Why does the majority have problems discerning
Jessie Lides intent?
34
I wish Evelyn White to have my home to live in
and not to be sold. Possible Characterizations

• Fee Simple
• Life Estate
• Conditional Fee
• So long as not sold
• So long as E lives there
• Conditional Life Estate

35
DQE3 WHAT ARE THE MAJORITYS ARGUMENTSTHAT MS.
LIDE INTENDED TO CREATE A FEE SIMPLE?

36
MAJORITY ARGUMENTS(FEE SIMPLE)

• Presumption grant conveys whole estate
• No gift over
• Partial intestacy disfavored

37
DQE3 WHAT ARE THE DISSENTS ARGUMENTSTHAT MS.
LIDE INTENDED TO CREATE A LIFE ESTATE?

38
DISSENT ARGUMENTS(LIFE ESTATE)

• Grantor limited power to dispose
• Grant says to live in
• No limits in gift to niece

39

• I wish Evelyn White to have my home to live in
  and not to be sold. I also leave my personal
  property to Sandra White Perry. My house is not
  to be sold.
• Whose Arguments Seem Stronger?

40
HOLDING OF WHITE v. BROWN

• The Property Can Be Sold!!!

41
DQE4What additional facts might add weight to
the majority opinion?To the dissent?
42
VESTED v. CONTINGENT REMAINDERS
43
FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REMAINDER Future interest in a third party that
follows naturally upon the termination of a
finite estate. It is always expressly conveyed
by the grantor.
44
VESTED REMAINDER

• Grantee is living ascertainable person
• (Presumed if granted to a named individual)

45
VESTED REMAINDER

• Grantee is living ascertainable person AND
• Clause creating the remainder contains no
  condition on grantee taking the property except
  expiration of prior estate

46
VESTED REMAINDER

• Grantee is living ascertainable person AND
• Clause creating the remainder contains no
  condition on grantee taking the property except
  expiration of prior estate
• Example To Aaron for life, then to Oona and her
  heirs.

47
CONTINGENT REMAINDER

• Grantee is presently unborn or unascertainable
• OR
• Clause creating the remainder contains a
  condition on grantee taking the property

48
CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
  (Not born)

49
Suppose Fred has a Child
50
CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
• To Fred for life, then to Freds oldest child
  living at Freds death. (not ascertainable)

51
CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
• To Fred for life, then to Freds oldest child
  living at Freds death.
• To Fred for life, then to Wilma and her heirs if
  Dino survives Fred. (condition precedent)

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ANALOGY

• Vested Remainder ?
• Theater Ticket
• Contingent Remainder ? Lottery Ticket

54
Life Estate Vested Remainder

• To Fred for Life, then to Wilma and her heirs

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Life Estate Contingent Remainder

• Barney to Fred for Life, then to Wilma and her
  heirs if Dino survives Fred.

57
Life Estate Contingent Remainder

• Barney to Fred for Life then to Wilma and her
  heirs if Dino survives Fred.
• Barney retains a reversion.

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REMAINDERS IN

• To Fred for life, then to Wilma for life.
  Wilma has a vested remainder in life estate
• To Fred for life, then to Wilma and her heirs if
  Dino survives Wilma.
• Wilma has a contingent remainder in fee
  simple

60
PROBLEMS A-D

• Featuring The Supremes

61
(A) O conveys Baconacre "to Mayer and her
heirs."

• Mayer's only child, Armour, runs up large bills.
  Can Armour's creditors reach any interest of
  Armour in Baconacre?

62
(A) O conveys Baconacre "to Mayer and her
heirs."

• Mayer wishes to sell Baconacre and use the
  proceeds to take a trip around the world. Can
  Armour prevent Mayer from doing this?

63
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)

• Ernie ?

64
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)

• Ernie Life Estate
• Burt ?

65
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)

• Ernie Life Estate
• Burt Vested Remainder in Life Estate

66
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)
67
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)
Who owns the last piece?
68
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)
Kermit has a reversion (in frog green!) Ernie
dies?
69
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)
Kermit has a reversion Ernie dies? Burt has life
estate. Burt dies?
70
(B) Kermit to Ernie for life, then to Burt
forever. (Common Law)
Kermit has a reversion Ernie dies? Burt has life
estate. Burt dies? Kermit or Kermits heirs
have fee simple
71
(B) Kermit to Ernie for life, then to Burt
forever. (Today)

• Ernie Life Estate
• Burt ?

72
(B) Kermit to Ernie for life, then to Burt
forever. (Today)

• Ernie Life Estate
• Burt Vested Remainder
• in Fee Simple
• Kermit?

73
(B) Kermit to Ernie for life, then to Burt
forever. (Today)

• Ernie Life Estate
• Burt Vested Remainder in Fee Simple
• Kermit Nothing

74
(B) Kermit to Ernie for life, then to Burt
forever. (Today)
Ernie dies?
75
(B) Kermit to Ernie for life, then to Burt
forever. (Today)
Ernie dies? Burt takes a fee simple
absolute. Burt dies?
76
(B) Kermit to Ernie for life, then to Burt
forever. (Today)
Ernie dies? Burt takes a fee simple
absolute. Burt dies? Property passes by will or
through intestacy.
77
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Sylvester ?

78
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Sylvester Life Estate
• Bugs?

79
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Sylvester Life Estate
• Bugs Vested Remainder in Fee Simple

80
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Bugs dies intestate without heirs. Impact?

81
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Bugs dies intestate without heirs.
• Vested remainder passes to the state.
• Sylvester dies. Effect?

82
(C) Elmer to Sylvester for life, then to Bugs
and his heirs.

• Bugs dies intestate without heirs.
• Vested remainder passes to the state.
• Sylvester dies.
• State has a fee simple absolute.

83
(D) Mickey to Minnie for life, then to Pluto
for 99 years.

• Minnie ?

84
(D) Mickey to Minnie for life, then to Pluto
for 99 years.

• Minnie Life Estate
• Pluto?

85
(D) Mickey to Minnie for life, then to Pluto
for 99 years.

• Minnie Life Estate
• Pluto Vested Remainder in Term of Years.
• Anything Else?

86
(D) Mickey to Minnie for life, then to Pluto
for 99 years.

• Minnie Life Estate
• Pluto Vested Remainder in Term of Years.
• Mickey Reversion (to his heirs or devisees)

87
PROBLEMS E-H

• Featuring The Beatles

88
(E) Derek to Bernie for life, then to Jorge for
life, then to Roger and his heirs.

• Bernie?

89
(E) Derek to Bernie for life, then to Jorge for
life, then to Roger and his heirs.

• Bernie Life Estate
• Jorge?

90
(E) Derek to Bernie for life, then to Jorge for
life, then to Roger and his heirs.

• Bernie Life Estate
• Jorge Vested Remainder in Life Estate
• Roger?

91
(E) Derek to Bernie for life, then to Jorge for
life, then to Roger and his heirs.

• Bernie Life Estate
• Jorge Vested Remainder in Life Estate
• Roger Vested Remainder in Fee Simple

92
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty is 15.

• Veronica ?

93
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty is 15.

• Veronica Life Estate
• Betty?

94
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty is 15.

• Veronica Life Estate
• Betty Contingent Remainder in Fee Simple
• What happens if Betty dies at 17?

95
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty is 15.

• What happens if Betty dies at 17?
• No instructions. What happens when a grantor
  does not fully dispose of the property in all
  possible scenarios?

96
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty is 15.

• If a grantor does not fully dispose of the
  property, we assume he kept the parts not
  mentioned for himself. Here, Reggie has a
  reversion. If Betty dies before turning 21,
  Reggie or his designees will get the property in
  fee simple when Veronica dies.

97
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.

• What if Betty turns 21 while Veronica is alive?

98
(F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.
Betty turns 21.

• Bettys contingent remainder vests leaving her
  with a vested remainder in fee simple.
• Reggies reversion divests, leaving him with
  nothing.

99
(6F) Reggie to Veronica for life, then to Betty
and her heirs if Betty attains the age of 21.

• Veronica Life Estate
• Betty Contingent Remainder in Fee Simple
• Reggie Reversion
• What happens if Veronica dies when Betty is 17?

100
THE READY BETTY JOKE
101
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry?

102
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry Life Estate
• Moe Curly?

103
(G) To my only son, Larry, for life, then to
Larry's children and their heirs." Larry has two
children, Moe and Curly.

• Larry Life Estate
• Moe Curly Vested Remainders
• (in F.S.) Subject to Open
• Larry has another child, Stella. Stella has?

104
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry Life Estate
• Moe Curly Stella Vested Remainders (in
  F.S.) Subject to Open
• Curly dies, leaving his wife, Noreen, and a
  child, Orrin Curly's will devises all his
  property to Noreen. What happens to Curlys
  interest?

105
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry Life Estate
• Moe Noreen Stella Vested Remainders (in
  F.S.) Subject to Open
• Larry dies. State of the title?

106
(G) To my only son, Larry, for life, then to
Larry's children and their heirs."

• Larry dies. State of the title?
• Moe Noreen Stella share fee simple absolute
  (tenants in common).