MBE Rules · Real Property
Remainders — vested vs contingent
The rule
Vested: (1) held by ascertained person AND (2) not subject to condition precedent. Subtypes: indefeasibly vested, vested subject to open (class members may join), vested subject to total divestment. Contingent: holder unascertained OR subject to condition precedent (other than termination of preceding estate).
In plain English
A vested remainder is a future interest that is certain to go to someone known, without any extra conditions. A contingent remainder is uncertain because it depends on meeting a condition or identifying the person who will get it.
Worked example
In a will, if a house is left to the first child of the owner who graduates college, the remainder is contingent. If the house is left to a specific child when they turn 18, it's vested.
Memory hook
Vested is guaranteed, contingent is conditional. Vested: known owner, no strings. Contingent: unknown or iffy conditions.
The trap
Students think: any future interest is contingent. Wrong, because vested remainders have no conditions precedent and are held by known individuals. The actual test is if the remainder is ascertained and unconditional.
How examiners test it
The MBE loves: person has future interest but unknown heirs or conditions. Question: vested or contingent? Trap: students forget vested requires ascertained person and no conditions.
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