LLB220 Lecture Notes - Lecture 13: Testator, Rule Against Perpetuities, Life Estate
Week 13 – Conditional Interests and Perpetuities
Mechanisms people use to control inheritance and transmission of property generally into
the future
Determinable Interests
• Some event that could bring the interest to an end
• To A, until she enrols in law school.
• Event may or may not occur. If it does occur, interest is at an end & property reverts
to the grantor
• Reversion
• Event cannot be severed from the interest, if condition is void, entire grant will fail.
Defeasible Interest (condition subsequent)
• To A provided that the land is never zoned for commercial purposes
• No determination language – util
• Grantor retains a right of re-entry → may but not must take interest back if
condition occurs
• Condition can be separated from the grant. If it is void, grant is still valid
Conditional Interests
• To A provided that she enrols in law school
- So she has to be enrolled in law school BEFORE the interest is granted
• Condition must be met before grant is made
• Grantor retrains the interest until the condition is met.
• If the condition is void, the grant will fail
Void Conditions
• Conditions may be void for uncertainty or if impossible to satisfy (Hickin v Carroll &
Ors (No 2) [2014] NSWSC 1059)
• Conditions can be void for public policy – Examples:
- Requiring both parts of a couple to be Protestants, as it could be an incentive for
divorce (Trustees of Church Property of the Dicoese of Newcastle v Ebbeck (1960)
104 CLR 394)
- Property conveyed to the woman in a long term adulterous relationship -- O
her o ters, that she ould stik to e ad ehae herself. Contrary to
public policy because it maintained the adultery (Zalpetal v Wright [1957] Tas SR
211)
- Public policy issues have arisen re gifts which interfere with parental decisions in
raising their children, gifts requiring recipient to use a particular name, gifts
requiring a particular residence
- Fact dependant, but also changing social values will affect findings
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Document Summary
Mechanisms people use to control inheritance and transmission of property generally into the future. Determinable interests: some event that could bring the interest to an end, to a, until she enrols in law school, event may or may not occur. If it does occur, interest is at an end & property reverts to the grantor: reversion, event cannot be severed from the interest, if condition is void, entire grant will fail. If it is void, grant is still valid. Conditional interests: to a provided that she enrols in law school. So she has to be enrolled in law school before the interest is granted: condition must be met before grant is made, grantor retrains the interest until the condition is met. If the condition is void, the grant will fail. Void conditions: conditions may be void for uncertainty or if impossible to satisfy (hickin v carroll &
