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PROPERTY B SLIDES

This presentation covers the distinctions between reversion and remainder, vested and contingent remainders, and remainders and executory interests in Property B. It also discusses shifting and springing executory interests, alternative contingent remainders, and common mistakes to avoid.

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PROPERTY B SLIDES

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  1. PROPERTY B SLIDES 3-18-19 National Sloppy Joe Day

  2. Monday March 18 Music to Accompany EFI Problems:Wynton Marsalis, TrumpetClassic Wynton (1998) Next Few DF Sessions: • Today @ 9:40 Here = 2015 Chapter 3 Test (Brendan) • Wed 3/6 @ 9:40 Here = 2016 Chapter 3 Test (Lauren) • Fri 3/8 @ 12:30 Here = 2017 Chapter 3 Test (Brendan) Lunch Tomorrow Meet on Bricks @ 12:25 Alonso * Auer * Beck N. Caceres * Delgado Hays * Shetty

  3. PROPERTY B: 3/18 Pop Culture Moment “YOU GO TO MY HEAD” A Multi-Generational Mash-Up in Tribute to the Women of Section B

  4. Previously in Property B We Completed Chapter Two with the Aerial Parts of the Tempest of the Teapot Problem and Learned an Important Life Lesson

  5. Previously in Property B

  6. Previously in Property B: Chapter 3 Distinctions You Should Know Basics: Present Possessory Estates v. Future Interests Fee Simple v.Finite Present Estates Common Law v. Today We’ll Review Now: Reversions v. Remainders Vested v. Contingent Remainders Remainders v. Executory Interests We’ll Review Before Doing Problem 3I : Determinable v. on Condition Subsequent

  7. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Reversion v. Remainder REVERSION: Future interest implicitly retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires. 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.

  8. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N VESTED RemainderIF: Grantee is living ascertainable person AND Clause creating the remainder contains no condition on grantee taking the property except expiration of prior estate. CONTINGENT RemainderIIF: Grantee is presently unborn or unascertainableOR Clause creating the remainder contains an explicit condition on grantee taking the property.

  9. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Remainder v. Executory Interest REMAINDER: Future interest in a third party that follows naturally upon the termination of a finite estate. EXECUTORY INTEREST: Future interest in a third party that cuts off a prior vested interest (present estate or reversion or vested remainder) rather than waiting for it to expire naturally.

  10. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Shifting v. Springing Executory Interests No legal consequence; just categorization. Shifting Executory Interest cuts off interest of another grantee. To Danny & his heirs so long as no tobacco is grown on the land, otherwise to Arturo and his heirs. Springing Exec. Interest cuts off grantor’s fee simple or reversion. To Yujia & her heirs if she passes the California Bar Exam. (Would cut off grantor’s fee simple).

  11. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: To K for life, then to L and her heirs if she graduates from law school, but if she never graduates from law school, then to M and her heirs. Here, only two possibilities: EITHER(1) L will graduate from law school (and would then take) OR (2) she will die before graduating from law school (M would then take)

  12. WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: To K for life, then to L and her heirs if she graduates from law school, but if she never graduates from law school, then to M and her heirs. When Alternative Contingent Remainders Created, Grantor Always Retains aReversion

  13. Vested Remainder Subject to Divestment • Vested Remainder followed by an Executory Interest that could cut it off before it becomes possessory. • Same as what textbook calls “Vested Remainder Subject to Complete Defeasance”(P539)

  14. Vested Remainder Subject to Divestment O “to A for life, then to B & her heirs,but if B dies before 21, then to C & his heirs.” (No Reversion in O) • Clause creating interest in B has no conditions, so “vested remainder” • Executory interest in C could cut off B’s interest before B takes possession (= end of life estate), so “subject to divestment”

  15. Contingent Remainder (1) v. Vested Remainder Subject to Divestment (2) • O “to A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs.” Reversion in O. [Clause creating interest in B includes condition] (2) O “to A for life, then to B & her heirs,but if B dies before 21, then to C & his heirs.” (No Reversion in O) [Clause creating interest in B has no conditions]

  16. EXAM TIP: COMMON MISTAKES Contingent Remainder Subject to Open Contingent Remainder Subject to Divestment Executory Interest Subject to Divestment

  17. EXAM TIP: COMMON MISTAKES Contingent Remainder Subject to Open Contingent Remainder Subject to Divestment Executory Interest Subject to Divestment These Phrases Only Used for Vested Remainders

  18. EVERGLADES: Problems 3K-3L EGRET IN MANGROVE SWAMP

  19. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. • George ?

  20. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. • George: Life Estate • Kramer?

  21. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f.s.) Subj. to Divestment • Vested b/c K not reaching 21 is condition on Elaine’s interest; K doesn’t have to reach 21 to get possession • Subject to Divestment b/c K can lose interest before it becomes possessory if he dies before 21 while G alive • Elaine?

  22. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f.s.) Subj. to Divestment • Elaine: Shifting Executory Interest (in f.s.) • Executory Interest b/c would cut off K’s Vested Rem. (or Fee if K gets possession before turning 21) • Shifting b/c cutting off grantee’s interest • Note: If there’s a vested remainder, can’t have a second remainder following same finite interest.

  23. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f.s.) Subj. to Divestment • Elaine: Shifting Executory Interest (in f.s.) What if Kramer then turns 21 before George dies?

  24. Everglades (3K):“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer turns 21; George still alive. • George: Life Estate • Kramer: Vested Rem. (in f.s.) Subj. to Divestment • Elaine: Shifting Executory Interest (in f.s.) Interest fails. QUESTIONS?

  25. Problems 3L-3N Everglades: Problem 3L THEN Sequoia: Problem 3M & Badlands: Problem 3N Hold Qs Until We’ve Worked Through All Three

  26. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: ?

  27. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: Life Estate • Tweety’s Children?

  28. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: Life Estate • Tweety’s Children: Contingent Remainder (in f.s.) (Must Survive Tweety) • Peggy?

  29. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: Life Estate • Tweety’s Children: Contingent Remainder (in f.s.) • Peggy: Alternative Contingent Remainder (in f.s.): Only 2 Possibilities: • Tweety survived by children (who take) • Tweety not survived by children (Peggy takes)

  30. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: Life Estate • Tweety’s Children: Alternative Contingent Remainder (in f.s.) • Peggy: Alternative Contingent Remainder (in f.s.) • Anything Else?

  31. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweetyhas 2 children, Heckle and Jeckle. • Tweety: Life Estate • Tweety’s Children: Contingent Remainder (in f.s.) • Peggy: Alternative Contingent Remainder (in f.s.) • Daffy: Reversion (even when alternate contingent remainders)

  32. Everglades (3L):Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." • Tweety: Life Estate • Tweety’s Children: Alternative Contingent Remainder (in f.s.) • Peggy: Alternative Contingent Remainder (in f.s.) • Daffy: Reversion (even when alternate contingent remainders)

  33. SEQUOIA: Problem 3M SEQUOIAS

  34. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs,but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: ?

  35. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs,but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: Life Estate • Billy’s children: ?

  36. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: Life Estate • Billy’s children: Contingent Remainder (in f.s.) (Unborn) • Jo: ?

  37. Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other.

  38. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • When does contingent remainder in B’s children vest?

  39. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Contingent remainder in B’s children vests when a child of B’s is born. • When does contingent remainder in Jo vest?

  40. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Contingent remainder in B’s children vests when a child of B’s is born. • Contingent remainder in Jo vests when Billy dies survived by no children. • Is the interest in Jo destroyed when the interest in the children vests?

  41. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: Life Estate • Billy’s children: Contingent Remainder (in f.s.) • Jo: Contingent Remainder (in f.s.) (Not alternate) • Anything Else?

  42. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: Life Estate • Billy’s children: Contingent Remainder (in f.s.) • Jo: Contingent rem. (in f.s.) (Not alternate) • Amanda: Reversion

  43. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has no children. • Billy: Life Estate • Billy’s children: Contingent Rem. (in f.s.) (unborn) • Jo: Contingent Rem. (in f.s.) (Not Alternative) • Amanda: Reversion

  44. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has a child, Sydney. • Billy: Life Estate • Sydney?

  45. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs."Billy has a child, Sydney. • Billy: Life Estate • Sydney: Vested Remainder (in f.s.) … • Subject to Open (B can have more children) … • Subject to Divestment (interest lost if none of B’s children survive B) • Jo?

  46. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. • Billy: Life Estate • Sydney: Vested Remainder (in f.s.)Subject to Open, Subject to Divestment • Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder) • Amanda?

  47. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. • Billy: Life Estate • Sydney: Vested Remainder (in f.s.)Subject to Open, Subject to Divestment • Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder) • Amanda: Nothing (Reversion divests when 1st contingent remainder vests)

  48. Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) • To A for life, [then to B & her heirs if she turns 21], [but if B dies before 21, then to C and his heirs]. Reversion in O. (2) To A for life, [then to B & her heirs], [but if B dies before 21, then to C & his heirs.] (No Reversion in O)

  49. Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) • (1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O. • (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. • Both 1+2: If A alive & B dies at 14: • B gets Nothing; • C gets fee simple at A’s death

  50. Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) • (1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O. • (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. • Both 1+2: If A alive & B turns 21: • B has vested remainder • C’s interest fails

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