An executory interest is a future interest in a transferee that must either divest the prior estate or spring out of the grantor to become possessory. Executory interests are non-vested interests and are subject to the Rules Against Perpetuities. There are two types of executory interests: shifting and springing.
What is the difference between a remainder and an executory interest?
Who owns a future interest in real property quizlet?
What is a fee simple subject to an executory limitation?
What future interests mean?
What is a future interest in a trust?
A possessory interest allows a beneficiary to possess the property when the interest is conveyed. However, a future interest only allows a beneficiary to possess the property at sometime in the future, after the interest has been conveyed.
What is contingent interest in property law?
Contingent interest. —Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property.
Who would hold a future interest in the house and what would that interest be called?
Reversionary Interests
These are future interests held by the grantor or devisor of an interest in real property. A grantor is simply the name we give to someone who conveys an interest during his or her life, while a devisor does it through a will after death.
What is the difference between a vested remainder and a contingent remainder?
There are two types of remainders in property law: vested and contingent. A vested remainder is held by a specific person without any conditions precedent; a contingent remainder is one for which the holder has not been identified, or for which a condition precedent must be satisfied.
What is a remainder property law?
A remainder is a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years.
What is future right?
FUTURE RIGHT Definition & Legal Meaning
right that will happen in the future and in accordance with provisions and stipulations of an existing contract.
What is a remainder in property law?
A remainder is a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years. It is created by the use of the phrase “then to” or similar language.
What is a vested remainder subject to open?
vested remainder subject to open (plural vested remainders subject to open) (law) A future interest held by a member of a class, for which the interest is certain to vest, but for which new members may enter the class before the interest vests, thereby reducing each member’s share of the total interest.
What is vested ownership?
Vested ownership means the individual or individuals own the property in its entirety. There are several options for buyers to take title, and deciding which way of holding title is right for you can be made easier with the help of a trusted real estate attorney.
What is a vested interest in a trust?
A beneficiary of a trust has a vested interest if he does not have to meet any conditions for his interest to take effect. The interest may be: Vested in possession, if it is a “present right to present enjoyment”, such as an immediate right to income.
What is possibility of reverter?
The possibility of reverter is a future interest held by a grantor or transferor of property as a fee simple determinable (See possessory estate). Distinct from a fee simple absolute, a fee simple determinable is an estate that has a provision that automatically reverts the property to the grantor if an event happens.
What is a remainder interest in a trust?
In trust law, a remainder interest is the part of the trust property that remains after the specific devises are given to the intended beneficiaries.
What is a executory interest in real estate?
Primary tabs. An executory interest is a future interest in a transferee that must either divest the prior estate or spring out of the grantor to become possessory. Executory interests are non-vested interests and are subject to the Rules Against Perpetuities.
What is reversionary owner?
Reversionary interest refers to the right to occupy and use the land sometime in the future (future interest) e.g. upon the expiry of the lease period. In the case of the State land, after 99 years, the land returns to the state. The State is said to have a reversionary interest in the land.
What is a life tenant of a trust?
A person who has a life interest is called a life tenant, or sometimes a tenant for life. A life tenant is entitled to the income of a fund, but not capital. The entitlement usually continues for life, but can be for a shorter period.
What happens when futures expire?
Futures contracts have expiration dates as opposed to stocks that trade in perpetuity. They are rolled over to a different month to avoid the costs and obligations associated with settlement of the contracts. Futures contracts are most often settled by physical settlement or cash settlement.