i. a future interest created in a grantee that is capable of becoming a present possessory estate upon the expiration of a prior possessory estate created in the same conveyance in which the remainder was created
iii. A remainder may be vested but not certain of becoming possessory
a) To A for life, then to B and his heirs, but if B does not survive A to C and his heirs
b) B has a vested remainder in fee simple subject to divestment
c) C has a shifting executory interest which can become possessory only by divesting B's remainder
iv. A vested remainder can be created in a class of personsif one member of the class is ascertained and there is no condition precedent. The remainder is vested subject to open or vested subject to partial divestment if later born children are entitled to share in the gift
i. If the future interest created is a contingent remainder in fee simple, the second future interest will also be a contingent remainder. If the first future interest created is a vested remainder in fee simple, the second future interest in a transferee will be a divesting executory interest.
2. Executory Interests
i. a future interest in a transferee that must, in order to become possessory:
a) divest or cut short some interest in another transferee (shifting executory interest)
i) to A but if he serves alcohol to B
b) divest the transferor in the future (springing executory interest)
iii. purports to create a remainder in persons described as A's heirs (or the heirs of A's body), and
iv. the life estate and remainder are both legal or both equitable,
b. then the remainder becomes a remaider in fee simple (or fee tail) in A.
i. If the requirements for application of the Rule are not initially met at the time of the conveyance, but are met subsequently, the Rule will apply subsequently when the requirements are met
d. Practical impact
i. abolished in most states
2. Doctrine of merger
a. entirely separate doctrine from the rule in shelley's case
i. the doctrine of merger is that a life estate in A and a remainder in A will merge unless (i) there is an intervening estate or (ii) the remainder in A is subject to a condition precedent to which his life estate is not subject
i. When an inter vivos conveyance purports to create a future interest in the heirs of the grantor, the future interest is void and the grantor has a reversion
b. Modern Rule?
i. applies to personal property as well as to land. It is a rule of construction, not a rule of law. It raises a presumption that no remainder has been created, but this presumption can be rebutted by evidence of a contrary intent of the grantor
c. Typical application?
i. Revocation of truse
4. Destructibility of Contingent Remainders
i. a legal contingent remainder in land is destroyed if it does not vest at or before the termination of the preceding freehold estate. If the remainderman is not ready to take seisin when it is offered, he is wiped out and seisin moves on the next vested estate.
ii. not applicable to executory interests or vested remainders
i. To A for life, remainder to A's children who reach age 21.