What are future interests in property law?
Overview. A future interest is in direct contrast with a present right to property, also referred to as a possessory estate. A future interest may be conditioned upon the occurrence of a certain condition or event, or it can also be unconditional. Future interests are created at the formation of a defeasible estate.
How do you analyze present estates and future interests on real property questions?
We have this shifting executor e interest which divest the transferee. We have the springing executory interest which divest the transfer or so in this example.
What is a reversion future interest?
A reversion in property law is a future interest that is retained by the grantor after the conveyance of an estate of a lesser quantum that he has (such as the owner of a fee simple granting a life estate or a leasehold estate).
What is a springing interest in property law?
Springing interest is an interest in property where the person owns the property after something occurs or at a specified time. Springing interests often appear in wills and estates where a person inherits property only after something occurs.
What is an example of future interest?
Future interests are created on the formation of a defeasible estate; that is, an estate with a condition or event triggering transfer of possessory ownership. A common example is the landlord-tenant relationship. The landlord may own a house, but has no general right to enter it while it is being rented.
What two types of estates are followed by future interests?
Grantees can hold two kinds of future interests: executory interests and remainders.
What future interests are subject to rule against perpetuities?
The rule against perpetuities does not apply to future interests held by a grantor. Those interests—reversions, possibilities of reverters and rights of entry/powers of termination—are inherently vested.
What is the difference between a possessory estate and a future interest?
A present possessory estate in land is an interest where you have the current right to possess and use the real property. A future interest is an estate in land where you have a present interest in real property, but you don’t currently have the right to possess the property.
Can a future interest be transferred?
It is important to note that a future interest, although it does not grant any present right of possession, can be transferred or even sold before it actually vests.
Who Owns future interest in real property?
Just as when one deeds a house or other real estate to another, the transfer of this future interest is not revocable. Upon delivery of the deed, the grantors continue owning the present interest in the property for their lifetimes and are called life tenants or present owners.
Which type of estate Cannot pass by inheritance?
Which type of estate cannot pass by inheritance? A conventional life estate reverts back to the grantor automatically and immediately at the death of the life tenant. There is no interest remaining for the life tenant to pass on to their heirs.
Which future interest divests the interest of another transferee?
shifting executory interest
A shifting executory interest divests some interests in another transferee prior to its natural expiration, thereby cutting short the prior estate.
What is a non vested property interest?
Primary tabs. A common law property rule that states that no interest in land is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest.
Are future interests transferable?
What are the two main types of possessory interest in real property?
The two types of possessory interests are freehold and leasehold estates. Easements and liens are non-possessory interests.
Who owns the property in a life estate?
The life tenant
If there is a life estate, the life tenant’s interest in the property ends at death, and ownership is transferred to the remainderman. The life tenant is the property owner for life and is responsible for costs such as property taxes, insurance, and maintenance.
What is the rule against property?
The rule against perpetuity, also known as the rule against remoteness of vesting, means that a property cannot be transferred in such a manner that it becomes inalienable for an indefinite period. When a property is transferred in such a way that it cannot be transferred any further, it is tied up forever.
What is an example of a possessory interest?
Some examples of taxable possessory interests include cabins located on publicly owned land, aircraft hangars and tie-downs at publicly owned airports, grazing permits issued on publicly owned land, and concessionaires at county owned fairgrounds.
What is it called when a land interest holder does not have the right to possess?
If the interest-holder enjoys the right of possession, the party is considered to have an estate in land, or, familiarly an estate. If a private interest-holder does not have the right to possess, the interest is an encumbrance.
Can you sell a property with a life interest?
If the survivor needs to move house, downsize or even themselves go into care, the property can be sold. The sale proceeds will be divided 50/50 between the surviving spouse and the Trustees. This means that 50% of the sale proceeds will go into the survivor’s bank account and can be used to pay for their care.
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 can attest in property law?
A relative, a friend, a business partner, or a neighbour can be a competent witness. Even an illiterate or blind person can be a competent witness. However, a party to the deed,[10] a person who executes a deed of transfer as a power of attorney, or as an agent of other[11] cannot be attesting witnesses.
Which of the following constitutes a possessory interest in land?
Possessory interest is the right and intent of someone to occupy or control a plot of land but does not include ownership of the land.
What are the disadvantages of a life interest trust?
What are the disadvantages of a Life Interest Trust? It is not an absolute gift to your surviving spouse. They are only entitled to the income from the Fund or the right to remain in the property. This may seem very rigid and some spouses resent having to be answerable to trustees.
What happens to a life interest on death?
The person you give the life interest to is called the ‘life tenant’, and they are entitled to the income from the assets in the life interest trust. Once the life interest comes to an end, usually when the life tenant dies, the capital passes to the ultimate beneficiaries you specify (called the ‘remaindermen’).