PROPERTY Estates in land

Professor Joan C. Williams

© Spring 2013

How do these rules

reflect the feudal vision?

• “No man can create an estate.”

• Presumption in favor of life estate

• Common law prohibition of sales – Statute Quia Emptores (1290)

• “Only God can make an heir.” – Statute of Wills (1540)

• Fees tail

Flow chart of future interests

• Future interest retained by GR

• Future interest in 3rd party

– Is it a remainder? 2 rules

• Does it cut short the prior estate?

• Does it take possession, if at all, immediately upon

the expiration or the prior estate?

The basics: reversions

• “To A for life.”

• A – life estate

• O – reversion

A’s life estate O’s reversion

• ---------------------/---------------------→

The basics: remainders

• “To a for life, then to B and his heirs.”

• A – life estate

• B –vested remainder in fee

• A’s life estate B’s vested remainder in fee

• ---------------------/---------------------------→

Vested or contingent remainder?

• “To A for life, then to the children of B.” B has no

children

• A - life estate

• B’s children - contingent remainder in fee (who

contingency)

• O - reversion

• Note that “the class closes” upon A’s death, in

order to “save the grant.”

Vested or contingent remainder?

• “To A for life, then to the children of B.” B has

two children

• A - life estate

• B’s children – vested remainder in fee subject to

partial divestment

Vested or contingent remainder?

• “To A for life, then to B if B has married.”

• A - life estate

• B’s children - contingent remainder in fee

(what contingency)

• O - reversion

• Note that “the class closes” upon A’s

death, in order to “save the grant.”

Vested or contingent?

• “To A for life, then to the children of B who

survive him.” B has no children.

• A – life estate

• B’s children – contingent remainder in fee

• (who and if contingencies) (double

contingency)

• O – reversion

The basics: contingent remainders

• “To a for life, then to the children of B.” B

has no children.

• A – life estate

• Children of B – contingent remainder in

fee / kids’ contingent remainder in fee

/

A’s life estate / O’s reversion

• ----------/-------------------------------------→

The basics: 2 life estates

• “To A for life, then to B for life.”

A’s life estate B’s life estate O’s reversion

• --------------------/--------------/--------------→

When is a future interest

not a remainder?

• “To A for life, then to B immediately upon

his graduation from law school.”

• “To A for life, then after three years to B.”

Executory interests are

shifting or springing

• “To A so long as the land is farmed, then

to B.”

– Shifting

• “To A for life, then after three years to B.”

– Springing

Estate planning

• Gates, under his will, creates a trust, proceeds to be paid “to my beloved wife Melinda during her life, then to my children upon her death.” Name the estates:

• Life estate to Melinda

• Vested remainder in fee to the children

• Why introduce the trust?

• Estate tax triggered once rather than twice

• Re the children’s estate, when the estate becomes possessory, what do they get?

• Children have a remainder in fee simple

Problems

1. “O to A for life, then to B.”

• A has a life estate

• B’s future interest:

– A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• B has a vested remainder in fee

• Have we named all the estates?

• Yes: no scenario under which O gets it back

Problems

2. “O to A for life, then to B for life.”

• A has a life estate

• B’s future interest:

– A remainder or executory interest?

– What kind?

– When B gets it, what estate will be get?

• B has a vested remainder in a life estate

• Have we named all the estates?

• O has a reversion

Problems

• 3. “O to A for life, but if B graduates from law school, immediately to B and his heirs.”

• A has a life estate

• B’s interest – A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• B has a shifting executory interest in fee

• Have we named all the estates?

• O has a reversion

Problems

4. “O to A for life, then to B and his heirs if B reaches the age of 21.” B is two.

• A has a life estate

• B’s interest – A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• B has a contingent remainder in fee

• Have we named all the estates?

• O has a reversion

Problems

5. “O to A for life, then to B one year after A’s

death.”

• A has a life estate

• B’s interest

– A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• O has a reversion

• B has a springing executory interest in fee

Problems

6. “To A for life, then to B and his heirs if B

survives A.”

• A has a life estate

• B’s future interest

– A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• B has a contingent remainder in fee

• O has a reversion

Problems

7. “To A for life, then to B and his heirs, if B becomes a concert pianist.”

• A has a life estate

• B’s future interest – A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• B has contingent remainder in fee simple (class closes at A’s death)

• Have we named all of the estates?

• O has a reversion

Problems

8. “To A for life, then to the youngest child of Sally and Jim who is alive at A’s death, and that person’s heirs.”

• A has a life estate

• Youngest child’s future interest – A remainder or executory interest?

– What kind?

– When B gets it, what will he get?

• Youngest child – contingent remainder in fee (double contingency)

• Have we named all of the estates?

• O has a reversion

Crystals and mud

• Why has this area of law remained so

formalistic?