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Multiple Choice

In a life estate with the grant 'to A for life, but if A drinks, then B,' what is B's interest?

This item tests the distinction between a remainder and an executory interest, and when the right to take can divest the current holder before the natural end of the preceding estate. Here, A holds a life estate, but a condition—“but if A drinks”—triggers a transfer to B. Because the future interest that ends A’s hold and gives possession to B cuts short A’s life estate upon the happening of the condition, B’s interest divests the prior estate. That’s the hallmark of an executory interest, and because it divests a preceding estate rather than following a grantor’s creation, it’s a shifting executory interest. A remainder would only take effect after A’s life estate ends by death, not upon a conditional event during A’s life, so that option doesn’t fit. A life estate in B would imply B already has, or will have, a life estate of B’s own, which isn’t the case here—the future interest is a present, divesting interest that will transfer possession to B upon the condition.

This item tests the distinction between a remainder and an executory interest, and when the right to take can divest the current holder before the natural end of the preceding estate. Here, A holds a life estate, but a condition—“but if A drinks”—triggers a transfer to B. Because the future interest that ends A’s hold and gives possession to B cuts short A’s life estate upon the happening of the condition, B’s interest divests the prior estate. That’s the hallmark of an executory interest, and because it divests a preceding estate rather than following a grantor’s creation, it’s a shifting executory interest. A remainder would only take effect after A’s life estate ends by death, not upon a conditional event during A’s life, so that option doesn’t fit. A life estate in B would imply B already has, or will have, a life estate of B’s own, which isn’t the case here—the future interest is a present, divesting interest that will transfer possession to B upon the condition.