Do heirs have a future interest?
In addition, should the holder of a future interest die before his or her rights vest, the future interest holder’s heirs would inherit the future interest.
Can a possibility of reverter be conveyed?
The possibility of reverter arises when the grantor of real property has conveyed land subject to the possibility that the estate will return to her or to her heirs if a certain specified limitation occurs.
What is the difference between reversion and possibility of reverter?
Although both result in the return of the land to the original grantor or his heirs, reversions occur upon the natural expiration of the grantee’s estate, while the possibility of reverter actively ends the grantee’s otherwise-indefinite estate as a consequence of the grantee’s failure to comply with the condition …
What is the future interest of a life estate?
A life estate is a future interest that will result in ownership of the property only after the present possessory estate has run its course.
Can you sell a future interest in property?
Dividing Ownership Into Present and Future Interests The transferring owner (the grantor) can donate, sell or bargain-sell the future interest to the recipient (the grantee) identified in the deed. Just as when one deeds a house or other real estate to another, the transfer of this future interest is not revocable.
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 a reverter clause?
Just what is a reversionary clause? A reversionary clause in a deed is a statement that, upon the occurrence (or non-occurrence) of a specific event or events, title to the deeded property returns (reverts) to the origi- nal owner.
Which of the following types of ownership estates may contain a reverter clause?
Future estates may be either reversionary estates or: Remainder estates. An estate in land that places certain restrictions on an owner’s use of the property and contains an automatic reverter clause is known as: A fee simple determinable estate.
What type of interest is a life estate?
A Life Estate Is an “Interest in Property” The individual’s life estate is an interest in real property. The individual’s remainder is also an interest in real property. As can be seen from the first example above, sometimes one person can own the life estate and another person own the remainder interest.
Who owns the future interest in real property?
Both the grantor (aka transferor), who is the one that conveys the property interest, and the grantee (aka transferee), who receives the property interest, may have future interests in the property.
What is a gift of future interest?
A gift of a future interest is where the person who receives the gift does not yet have the unrestricted right to the immediate possession, use and enjoyment of the property, but will have these rights at a later time.
Can you sell future interest?
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.
What is reversionary interest?
A reversionary interest is created by a deed that reserves to the grantor a future ownership right upon the occurrence of some condition.
What does reversionary interest in property mean?
In trust law terms, a reversionary interest is an interest that reverts back to the settlor of a trust once a beneficiary’s interest has come to an end. For example, Bob gives a life interest in Rose Cottage to his mother Judy, and on Judy’s death the cottage is to revert back to Bob.