Johnson, pp. 159-181: Rules Furthering Marketability

 

Let’s look at three rules by which the common law tried to keep families from hoarding all the property.

 

A.   The Destructibility of Contingent Remainders

 

This is more or less only for historical interest.

 

At common law, lapses in the seisin were not allowed.  Remainders weren’t allowed to spring.  Contingent remainders were destroyed if they didn’t take effect at the end of the prior estate.  But this was before the Statute of Uses and the recognition of executory interests.

 

Another rule was that you could destroy a contingent remainder by acquiring both the life estate and the (fictional) reversion “surrounding” the contingent remainder and kind of “crush” it in between.  Vested remainders don’t get “crushed”.

 

But by 1700, executory interests were indestructible.  So how do you make indestructible future interests at this point?

 

B.    The Rule in Shelley’s Case and the Doctrine of Worthier Title

 

Case: Seymour v. Heubaum

 

A.   The Rule Against Perpetuities

 

Case: North Carolina National Bank v. Norris

 

T. Shaffer and C. Mooney, The Planning and Drafting of Wills and Trusts, 173-179

 

Practice Problems

 

Final Review Problems

 

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