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(Sections 14–21: Future Interests in Property) - Coggle Diagram
Sections 14–21: Future Interests in Property
Section 14 – Rule Against Perpetuity
Prevents property from being tied up indefinitely
No interest beyond life in being + minority of ultimate beneficiary
Applies to private transfers only
Exceptions: Section 18
Section 16 – Transfer on Failure of Prior Interest
If prior interest fails and subsequent transfer violates perpetuity, it becomes void
Ulterior disposition subject to perpetuity rules
Section 17 – Direction for Accumulation
Restricts income accumulation beyond 18 years
Exceptions:
For minor’s benefit
For debt payment
For maintenance
Section 18 – Transfer for Public Benefit
Exception to Rule Against Perpetuity (Section 14)
Valid even if beyond perpetuity period
Includes:
Education
Religion
Health
Public utilities and welfare
Section 19 – Vested Interest
Vests immediately unless postponed by express condition
Transferable and heritable
Not defeated by uncertainty
Contrast with Section 21 (Contingent Interest)
Section 20 – Vested Interest for Unborn Person
Requires a prior life interest in favor of a living person
Vests at birth of the unborn
Must comply with Section 13
Section 21 – Contingent Interest
Dependent on condition precedent
Does not vest until condition is fulfilled
Not heritable or transferable unless condition is met
Contrast with Section 19 (Vested Interest)
Section 15 – Transfer to Class of Persons
Applies when transfer is to a class, some of whom are valid, some aren't.
Effect: Valid for those not hit by perpetuity.
If some members are valid and others not (due to perpetuity), partial invalidity applies