A property is conveyed 'to Alice for life, then to Bob and his heirs.' Bob is alive and 35 years old at the time of conveyance. What type of interest does Bob hold?
Correct Answer
D) A vested remainder absolutely
Bob holds a vested remainder absolutely: the measuring life (Alice) is identified, Bob is ascertained (named and living), and there is no condition precedent to his taking possession—it vests at the moment of conveyance and becomes possessory upon Alice’s death. There is no language indicating divestment (e.g., 'but if Bob dies before Alice, then to Carol'), so it is not subject to divestment. It is not contingent (Option A) because no unmet condition exists (e.g., 'to Bob if he graduates law school'). An executory interest (Option B) would cut short a prior estate (e.g., 'to Alice for life, but if the property is used commercially, then to Bob'), which is absent here. USPAP Standards Rule 1-2 requires appraisers to identify and analyze such interests when valuing partial or future interests, making this foundational for Certified General candidates.
Why This Is the Correct Answer
Bob holds a vested remainder absolutely: the measuring life (Alice) is identified, Bob is ascertained (named and living), and there is no condition precedent to his taking possession—it vests at the moment of conveyance and becomes possessory upon Alice’s death. There is no language indicating divestment (e.g., 'but if Bob dies before Alice, then to Carol'), so it is not subject to divestment. It is not contingent (Option A) because no unmet condition exists (e.g., 'to Bob if he graduates law school'). An executory interest (Option B) would cut short a prior estate (e.g., 'to Alice for life, but if the property is used commercially, then to Bob'), which is absent here. USPAP Standards Rule 1-2 requires appraisers to identify and analyze such interests when valuing partial or future interests, making this foundational for Certified General candidates.
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