Tenurial Estates

”Possessory Estates”

Current Interest Estates Future Interest Estates

Vested

Confers rights to enjoyment of property at a future time. Defeasible

Contingent

Freehold

Fee Tail Interested created in Transferee

(Not in Texas – Attempts
Fee Simple Absolute
to create will result in Fee Class Gift
“To A and his heirs”
Simple or Fee Simple
Defeasible) Executory Interest
Must divest the prior estate If no RAP: Vested subject to open
Usually reserved by Government or Sovereign Entities

Created as Shifting Executory Interest If RAP applies: A class gift must

Life Estate Fee Simple Future interest that must cut short some vest in all of the members of the class
“To A for Life” Subject to interest in another transferee to become or it vest in none of the members of
Always followed by a future Executory possessory the class.
interest (Reversion or Remainder) Limitation To vest, a class must be closed, and
Springing Executory Interest all conditions satisfied within the
Future interest that must divest the transferor perpetuities period.
in the future to become possessory
Left over Interest after conveyance
Rules:
Leasehold Estates - Remainder can not follow Vested Fee Simple
Non-Freehold Possessory Remainder - Rule of Destructibility of Contingent Remainders: A
Estates Reversionary Interest Future Interest which waits until termination remainder in land is destroyed if it does not vest at or before
Defeasible Fees Future interest in the transferor of proceeding possessory estate the termination of the proceeding freehold estate. (Not
Term of Years Can only be created in the Must be vested when created applicable in TX)
Estate ending on a fixed transferee Reversion - Doctrine of Merger: If the life estate and the next vested
calendar date (may be less Interest left in grantor after estate in fee simple come into the hands of one person, the
than a year) transferring less than his full lesser estate merges in to the larger. (Does not apply to
Fee Simple Contingent Remainder executory interest)
interest
Determinable Condition to be met, or - Rule in Shelly’s Case: If 1 instrument creates a life estate in
Inter vivos transfer allowed
Ends automatically unascertained person land in A and purports to create a remainder in persons
Periodic Tenancy when event occurs described as A’s Heirs and the Life Estate are both legal, then
the remainder becomes a remainder in fee simple in A.
Magic Words (i.e. (Abolished in Texas since Jan 1, 1964)
with Durational Spring Possibility of Reverter Vested Remainder
Ascertained person and no - Doctrine of Worthier Title: Where there is a inter vivos
Aspect): So long as, conveyance of land by a grantor to a person with a limitation
While, During, Until. condition precedent
Tenancy at Will over to the grantor’s own heirs either by way of remainder or
executory interest, no future interest in the heirs is created,
Vested Subject to Open rather a reversion is retained by the grantor. (Furthers
Fee Simple Subject to aka Vested Subject to Partial alienability, But was Abolished in Texas since Jan 1, 1964)
Condition Subsequent Divestment - RAP: No interest is good unless it must vest if at all not later
May last forever, or may Right of Entry than 21 years after some life in being at the creation of the
terminate when event interest. (Only 3 interest subject to RAP, Contingent
occurs (at transferor’s CL: No inter vivos. transfer Indefeasibly Vested
String Certain to become possessory Remainder, Executory Interest, Class Gift)
election) Maj: inter vivos transfer - USRAP: Wait and See, 90 year vesting period., (TX shows
permitted. in the future and can not be
divested. no interest in adopting.)
Magic Words: But it, TX: ?
Provided, However, On Definitions:
Condition. Trust: Separation of Equitable and Legal Title
Hierarchy of Estates: Fee Simple -> Fee Tail -> Life Estate ->
Leasehold Estate

Kevin M. Jones, Spring 2007