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Future interests · complete doctrine guide

Remainders, executory interests, reversions, and RAP

Future interests must be classified precisely before any perpetuities analysis can even begin, since the rule against perpetuities applies to some categories and not others. A remainder is a future interest that takes effect naturally when a prior estate ends on its own terms, and it can be indefeasibly vested, meaning certain to become possessory with no conditions left; vested subject to open, meaning held by an ascertained class member but subject to shrinking as more class members are born; vested subject to complete divestment, meaning it could still be cut short by a condition; or contingent, meaning either its taker is unascertained or a condition precedent has not yet been satisfied. An executory interest instead cuts short a prior estate before its natural end, or follows a gap in possession, while a grantor's own retained future interests are limited to the reversion, the possibility of reverter, and the power of termination.

TESTED STATUSCurrent MBE, MEE where applicable, and NextGen foundational doctrine
01 · COMPLETE FRAMEWORK

Black-letter propositions

  1. 01

    A remainder follows natural termination and can be indefeasibly vested, vested subject to open, vested subject to divestment, or contingent.

  2. 02

    An executory interest cuts short another estate or follows a gap; grantor interests are reversion, possibility of reverter, and power of termination.

  3. 03

    A contingent remainder has an unascertained taker or condition precedent.

  4. 04

    Common-law RAP invalidates a contingent remainder, executory interest, or certain class gift unless it must vest or fail within a life in being plus 21 years.

  5. 05

    Vested interests, grantor interests, and many charity-to-charity shifts are outside common-law RAP.

02 · ORDER OF ANALYSIS

Use this attack sequence under time

1

Frame the issue

Write the full timeline.

2

Resolve the next checkpoint

Classify every interest.

3

Resolve the next checkpoint

Separate precedent conditions from later divestment.

4

Resolve the next checkpoint

For RAP, identify covered interest and validating life.

5

Finish the conclusion

Check statutory reform if supplied.

03 · DISTINCTIONS THAT CREATE POINTS

Common wrong turns

  • Probability is irrelevant under common-law RAP.
  • The unborn widow is not a measuring life at creation.
  • One remote class member can invalidate a class gift under all-or-nothing treatment.
04 · WORKED APPLICATION

Worked example

O conveys 'to A for life, then to A's first grandchild to reach 30,' when A has no grandchildren.

Model analysis

A child could be born later and have a child who reaches 30 too remotely; common-law RAP invalidates the contingent remainder.

05 · CLOSED-BOOK RETRIEVAL

Practice this topic

06 · FROM THE PRIMARY TEXT

Future interests

Cornell says a future interest is the right to possess property in the future, in contrast to a present possessory estate. A remainder is a future interest in a transferee that can take effect at the natural end of a prior estate created by the same instrument, such as a life tenant's death. A vested remainder is held by a specified individual and subject only to the expiration of preceding interests, and a contingent remainder is one where the holder has not been identified or a prior condition must be met. A reversion gives title back to the grantor or the grantor's descendants.

An executory interest is a future interest in a transferee that must either divest the prior estate or spring out of the grantor. It is non-vested and subject to the Rule Against Perpetuities, and the two types are shifting and springing.

07 · FROM THE PRIMARY TEXT

The Rule Against Perpetuities

Cornell states the common law rule as: an interest in real property is not good if it does not vest within 21 years of a life in being at the creation of the interest. An interest violates the rule if there is even a remote possibility that no life in being would acquire the interest in time. Many jurisdictions have modified the rule and some have abolished it.

To apply the rule, find the measuring lives at creation, identify the interest that is not yet vested, and ask whether it must vest or fail within the period.

08 · QUICK ANSWERS

Frequently asked questions

What is the controlling rule for remainders, executory interests, reversions, and rap?+

Future-interest analysis requires exact classification before asking whether a covered interest must vest or fail within the perpetuities period.

How should I analyze remainders, executory interests, reversions, and rap on the bar exam?+

Write the full timeline. Classify every interest. Separate precedent conditions from later divestment. Check statutory reform if supplied.

What is a remainder?+

A future interest in a transferee that takes effect at the natural end of a prior estate created by the same instrument.

What is the difference between vested and contingent remainders?+

A vested remainder is owned by a specified individual subject only to the expiration of preceding interests, while a contingent remainder has an unidentified holder or an unmet condition.

What is a reversion?+

A future interest that returns title to the grantor or the grantor's descendants when the prior estate ends.

What are the two types of executory interests?+

Shifting, which divests a prior transferee, and springing, which divests the transferor in the future, according to Cornell.

What is the common law Rule Against Perpetuities?+

An interest is not good if it does not vest within 21 years of a life in being at the creation of the interest.

SOURCE DESK

Primary sources

Cornell LII Wex: future interest↗Cornell LII Wex: remainder↗Cornell LII Wex: reversion↗Cornell LII Wex: executory interest↗Cornell LII Wex: rule against perpetuities↗

Governing text for remainders, executory interests, reversions, and rap

Uniform property acts (Uniform Law Commission) ↗