Trust Attorneys: Granting Future Interests

Answer 1

Writing estates can be a complex business. With just one single term missing or ambiguous, an entire will can fall to pieces. It is incredibly important for attorneys to be clear and precise in their writing, so the meanings of the documents they create are clearly communicated to clients. This article will discuss the various interests an attorney may choose to grant, while planning an estate or writing a legal will.

A future interest can follow an estate that ends naturally, such as a fee tail, life estate, or term of years. A future interest that follows an estate that ends naturally is called a reversion. Trust attorneys typically insert reversions into many types of possessory estates, such as a term of years or life estate.

A possibility of reverter is another type of future interest that can follow an estate. A possibility of reverter sometimes will follow a determinable estate. This type of future interest does not interrupt a determinable estate, but rather depends upon the occurrence of the event. Often, a future interest that follows a determinable estate will be speculative. In contrast, a reversion that follows an estate is not speculative.

Future interests can also follow estates which are subject to a condition subsequent. The name for this type of future interest is a right of entry. A right of entry requires that some sort of action be taken to enforce a right to enter into possession of an estate. If the grantor of an estate exercises such a right, then the grantor can take the land.

To sum it up, each type of possessory estate requires a specific type of future interest. For a fee simple absolute, there will never be a future interest granted by a grantor. For a fee tail, life estate, or term of years, then the future interest of reversion may be granted by the grantor. For a fee simple determinable, a possibility of reverter may be granted by a grantor. For a fee simple subject to a condition subsequent, then a right of entry may be granted by the grantor.

Overall, it is helpful to know the types of future interests that may be granted in an estate prior to meeting with an attorney. For a client, there may be one type of future interest that suits someone’s needs better than another kind. There are many benefits to knowing future interests inside and out.