What is a springing executory interest?
Noun. springing executory interest (plural springing executory interests) (law) An interest in an estate in land created by the conditions of a grant wherein the grantor cuts short the grantor’s own interest in the property in favor of the grantee, contingent upon the occurrence of a specific condition.
What is the difference between springing and shifting executory interest?
A shifting executory interest divests some interests in another transferee prior to its natural expiration, thereby cutting short the prior estate. Many shifting executory interests will violate the Rules Against Perpetuities. A springing executory interest divests the transferor in the future and has a gap of time.
What is a contingent remainder interest?
A contingent remainder is a subtype of a remainder, or a future interest in the grantee. Contingent remainders can come in two forms: a remainder is created in an unknown person or a remainder that has a condition precedent to possession.
What is a springing use?
Springing use refers to a use which will come into effect if something happens in the future. E.g., X has a springing use in A’s estate, which will pass to her when she marries Y.
What’s the difference between reversionary interest and remainder interest in a property?
With reversionary interest, the property reverts to the owner after the death of the life tenant. With remainder interest, the title to the property goes to a named third party following the death of the life tenant.
What is the difference between a vested future interest and a contingent future interest?
A contingent future interest is a future interest where the future event IS NOT certain to occur. A vested future interest is a future interest where the future event IS certain to occur.
What’s the difference between reversionary interest and remainder interest?
Can you have a vested remainder and executory interest?
B’s remainder is a remainder in fee. Hence, C’s interest must be an executory interest, since it takes effect by cutting short B’s fee. Rule of thumb: If the first remainder is vested (or becomes vested), then the alternative interest will be an executory interest.
Can a contingent remainder follow a vested remainder?
In fact, we may state a rule that contingent remainders are always followed by a vested interest, a reversion being implied if no other vested interest is stated. There follow further examples of contingent remainders.
What does springing mean in legal terms?
A power of attorney is springing when it takes place at some time in the future after signing. Springing durable power of attorney combines both of these elements where someone wants the power of attorney to take effect at a specific time or after the principal becomes incapacitated.
What is a springing provision?
The clause (provision) in a durable power of attorney that triggers (springs) the agent’s power and authority to operate when the person giving the power of attorney (principal, grantor) becomes disabled.
When a remainder estate is involved what owner interest is involved?
The holder of a remainder interest is called a remainderman. If no remainder estate is established, the estate reverts to the original owner or the owner’s heirs. In this situation, the original owner retains a reversionary interest or estate.
What is a shifting executory interest?
shifting executory interest (plural shifting executory interests) (law) A third party interest in an estate in land created by the conditions of a grant wherein the grantor gives the land to a second party, but with the occurrence of a condition divesting the second party of the land in favor of the third party.
What is the destructibility of contingent remainder doctrine?
Definition. A common-law doctrine providing that a contingent remainder was destroyed if the prior estate terminated, for any reason, before the remainder became vested. A great majority of states no longer follow this rule.
What is the difference between a remainder interest and a reversionary interest?
Can a contingent remainder be transferred?
Although it was held that a contingent remainder could not be transferred inter vivos, nevertheless, if the contingent remainder- man attempted to alienate and the remainder subsequently vested in his lifetime, the remainder under certain circumstances passed by way of estoppel to the alienee.
Is a reversion an executory interest?
There’s a one day reversion in the Grantor. The Grantor’s reversion is a fee and has no natural expiration. Hence, B’s interest is an executory interest. Alternative remainders are a bit more complicated.
What is the difference between a contingent remainder and a vested remainder subject to divestment?
There are two types of remainders in property law: vested and contingent. A vested remainder is held by a specific person without any conditions precedent; a contingent remainder is one for which the holder has not been identified, or for which a condition precedent must be satisfied.
Can you transfer an executory interest?
Shifting executory interests: A shifting executory interest will transfer ownership from a grantee to a third party. Another way of thinking about shifting executory interests is that they cut off the grantee’s interest in the property.
Is a contingent remainder Devisable?
Contingent remainders were not alienable. They were, however, devisable and descendible, unless those qualities were precluded by the nature of the remainder.
What is the springing clause in a POA?
This is known as a springing clause and is designed to provide extra protection to you in the event of you becoming frail but not incapacitated and ensures that your ability to manage your affairs won’t be taken from you by an over-enthusiastic attorney.
What is a springing enduring power of attorney?
The Enduring Power of Attorney is a document which comes into full force and effect upon being signed by the donor. This is in contrast to the Springing Power of Attorney which only comes into force and effect upon the subsequent incapacity of the donor to manage his or her own affairs.
What are springing rights?
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 the difference between a contingent remainder and executory interest?
A contingent remainder is going to flow from the natural termination of the previous estate (as long as the condition is met). The condition is essentially a condition precedent to taking the estate after the previous estate naturally ended. An executory interest is going to cut short the previous estate before it would have ended naturally.
What is a springing executory interest in a property?
Springing executory interests: A springing executory interest will transfer ownership from the grantor to a third party. Another way of thinking about springing executory interests is that they cut off the grantor’s own interest in the property.
What is a contingent remainder?
A contingent remainder is going to flow from the natural termination of the previous estate (as long as the condition is met). The condition is essentially a condition precedent to taking the estate after the previous estate naturally ended.
What are the elements of a remainder interest?
One of the basic elements of a remainder interest is that it must originate at the same time as the present interest, typically through the same deed. A remainder interest cannot belong to the original grantor, because such an interest would be a reversionary interest. For example, assume Joe owns a piece of property.