Bar Exam — MBE (Multistate Bar Exam)Real PropertyMedium
A grantor conveyed Blackacre 'to my son, for life, then to my daughter and her heirs.' At the time of the conveyance, the daughter had no children. The son is still alive. The daughter now wishes to sell her interest in Blackacre. What type of interest does the daughter possess, and is it alienable?
- AThe daughter possesses a contingent remainder in fee simple, which is not alienable.
- BThe daughter possesses a remainder subject to open, which is alienable but subject to partial divestment.
- CThe daughter possesses a reversion, which is alienable.
- DThe daughter possesses a vested remainder in fee simple, which is alienable.
Show answer & explanationAnswer & explanation
Correct answer: D. The daughter possesses a vested remainder in fee simple, which is alienable.
The daughter has a vested remainder because she is an ascertainable person and there is no condition precedent to her taking possession other than the natural termination of the preceding life estate. A vested remainder is alienable.
Why the other options are wrong
- A. A contingent remainder would exist if the daughter were unascertainable or if her interest was subject to a condition precedent. Neither is true here.
- B. A remainder subject to open would apply if the grantee was a class (e.g., 'to her children') and the class was still open. Here, it's 'to my daughter and her heirs,' referring to the daughter's fee simple interest, not a class of her children.
- C. A reversion is an interest retained by the grantor when they convey a lesser estate than they own. The daughter is a grantee, not the grantor, and she has a remainder interest.
Vested Remainder
A future interest created in a known, ascertainable person, not subject to any condition precedent, other than the natural termination of the preceding estate.
- Grantee is identified and alive.
- No condition precedent to taking possession (other than prior estate ending).
- Freely alienable, devisable, and inheritable.
- Contrast with contingent remainder.
Memory trick: Vested is Visible, Contingent is Conditional.