Also known as:implied in fact condition · implied-in-fact conditions · implied condition
Written by attorneys · grounded in primary & secondary sources — see below
An inferred condition arising from the overall structure of a donative instrument rather than from express words. Under the traditional rule of construction, a future interest is not subject to an implied condition requiring the beneficiary to survive the distribution date except in the case of a postponed multiple-generation class gift or when a statute provides otherwise.
Sources & Authorities
How it applies
Common Examples
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Future Interest Without Survival Requirement
Grantor devised property in trust to pay income to A for life then principal to A's children. Child X survived A while child Y predeceased A. The trustee distributed Y's share through Y's estate because the instrument created no implied condition that Y survive A.
Single-Generation Class Gift Construction
Grantor devised property 'to A for life, then to A's children.' One child predeceased A. The child's share passed through the child's estate because the single-generation class gift was not subject to an implied condition of survival.
Select any source to read its text and confirm it supports the definition.
Restatements
Dictionaries
Grantor created a trust to pay income to A for life, then to A's descendants living at A's death. Because the gift was to a multiple-generation class, the instrument imposed an implied condition that class members survive the distribution date.
No Implied Survival for Individual Remainder
Grantor devised property 'to A for life, remainder to B.' B predeceased A. B's remainder passed through B's estate because the future interest was not subject to an implied condition that B survive A.
Statutory Override of Traditional Rule
A state antilapse statute altered the common-law construction. The statute supplied an implied condition of survival that redirected a predeceasing beneficiary's share to that beneficiary's descendants rather than to the beneficiary's estate.
Condition of Survival Expressly Stated
Grantor devised property in trust to pay income to A for life, then principal 'to B if B survives A.' B's remainder was subject to an express condition of survival. The instrument did not rely on any implied condition.
Common questions
Frequently Asked
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How does an implied-in-fact condition differ from an express condition?+
An implied-in-fact condition arises from the surrounding facts and the nature of the transaction rather than from explicit contractual language. Courts infer it when the parties' conduct or the instrument's overall structure indicates that performance depends on a particular event.
Does the Restatement imply a survival condition for future interests?+
No. The Restatement provides that a future interest is not subject to an implied condition requiring the beneficiary to survive the distribution date except in the case of a postponed multiple-generation class gift or when a statute provides otherwise.
What happens to a beneficiary's share when no survival condition is implied?+
The deceased beneficiary's share passes through that beneficiary's estate rather than being redirected to surviving class members or alternate takers.
Can surrounding circumstances ever create an implied condition of survival?+
Only in limited situations such as postponed multiple-generation class gifts. The Restatement otherwise follows the traditional rule against implying survival requirements for single-generation gifts or individual future interests.
L.R. 2 K.B. 740 (Ct. App. 1903)Contracts
…for the return of his £25 deposit on the ground of total failure of consideration. Darling J. held that there was an implied condition that the procession should take place and gave judgment for the defendant. The plaintiff appealed. The real question in this case is the extent of the application in English law of the…