A homeowner conveys her property 'to my nephew for his lifetime, then to my nephew's oldest child, if that child is alive at the time of my nephew's death; otherwise to my sister.' At the time of the conveyance, the nephew has one child. Which of the following accurately describes the interests created by this conveyance?
The nephew has a fee simple, the nephew's oldest child has a contingent remainder, and the sister has an executory interest.
The nephew has a life estate, the nephew's oldest child has a vested remainder, and the sister has a reversion.
The nephew has a life estate, the nephew's oldest child has a springing executory interest, and the sister has a shifting executory interest.
The nephew has a life estate, the nephew's oldest child has a contingent remainder, and the sister has a vested remainder subject to divestment.
The correct answer is that the nephew has a life estate, the nephew's oldest child has a contingent remainder, and the sister has a vested remainder subject to divestment. This classification arises because:
The nephew receives a life estate, as the property is conveyed to him 'for his lifetime.'
The oldest child of the nephew has a contingent remainder, since their future interest is conditioned on being alive at the time of the nephew's death. This uncertainty makes it contingent.
The sister has a vested remainder subject to divestment because her interest is created without conditions attached, but it is subject to the possibility of being divested if the nephew's oldest child fulfills the condition precedent (being alive at the nephew’s death).
Other answer options are incorrect because they fail to accurately account for the conditional nature of the child's interest or the vested nature of the sister's interest, both of which are crucial to this problem.
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