Real Property assignment 4
Facts:
Barry would like to transfer his property to his wife, Lucy to avoid being vulnerable to creditors. He would like his three heirs to equally inherit the property after his and his wife’s death.
Issue:
Can Barry convey his property to Lucy and still be assured that the children will obtain the intended interest?
How should this be conveyed? What interests should he give to whom? What kind of remainder interests and tenancies should he give to the children? What type of deed is necessary for this conveyance?
Rule:
The Rule in Shelley’s Case states that a remainder interest cannot be created in the heirs of the holder of the present interest. The theory behind it is that a person should be able to decide what his or her own heirs will inherit and should not have that decision dictated by a grantor of property. The rule has been abolished in most states.
The Doctrine of Worthier Title dictates that a grantor cannot create a remainder interest in his own heirs. The idea behind this rule is that a grantor should rather keep a reversion for himself and then distribute the property to his heirs through the normal inheritance methods. The Doctrine of Worthier Title has been abolished in some states, but still exists as law in many other states
Analysis:
Since Barry doesn’t want the property in his name due to his financial situation, following the Doctrine of Worthier Title idea of keeping the reversion for himself is not a sensible option. The Rule in Shelly’s Case has been abolished in most states. This being the case, we will proceed in this manner as the state of New Tutor does not acknowledge this rule.
Conclusion:
A Life estate Pur Autre Vie should be given to Lucy, based on her life and Barry’s life with the remainder being divided between his heirs in a fee simple absolute. This would allow both he and Lucy to live there for the duration of their lives, yet the property interest is in Lucy’s name. The heirs will have the remainder interest as
Barry would like to transfer his property to his wife, Lucy to avoid being vulnerable to creditors. He would like his three heirs to equally inherit the property after his and his wife’s death.
Issue:
Can Barry convey his property to Lucy and still be assured that the children will obtain the intended interest?
How should this be conveyed? What interests should he give to whom? What kind of remainder interests and tenancies should he give to the children? What type of deed is necessary for this conveyance?
Rule:
The Rule in Shelley’s Case states that a remainder interest cannot be created in the heirs of the holder of the present interest. The theory behind it is that a person should be able to decide what his or her own heirs will inherit and should not have that decision dictated by a grantor of property. The rule has been abolished in most states.
The Doctrine of Worthier Title dictates that a grantor cannot create a remainder interest in his own heirs. The idea behind this rule is that a grantor should rather keep a reversion for himself and then distribute the property to his heirs through the normal inheritance methods. The Doctrine of Worthier Title has been abolished in some states, but still exists as law in many other states
Analysis:
Since Barry doesn’t want the property in his name due to his financial situation, following the Doctrine of Worthier Title idea of keeping the reversion for himself is not a sensible option. The Rule in Shelly’s Case has been abolished in most states. This being the case, we will proceed in this manner as the state of New Tutor does not acknowledge this rule.
Conclusion:
A Life estate Pur Autre Vie should be given to Lucy, based on her life and Barry’s life with the remainder being divided between his heirs in a fee simple absolute. This would allow both he and Lucy to live there for the duration of their lives, yet the property interest is in Lucy’s name. The heirs will have the remainder interest as