Also known as: powers of termination
Written by attorneys · grounded in primary & secondary sources — see below
A future interest retained by a grantor after conveying a fee simple subject to a condition subsequent so that the grantee's estate ends only if the grantor elects to exercise the right to retake the property upon breach of the condition.
Pavel Petrov held an estate in fee simple subject to condition subsequent. Upon his death his surviving spouse claimed dower in the land. The court held the dower subordinate to the power of termination retained by the original grantor because the condition subsequent had not been destroyed by any prior transfer.
Peter Park conveyed land in fee simple subject to condition subsequent. After his death his widow sought curtesy. The court ruled her interest subordinate to the power of termination that restricted the estate and had never been released.
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Preston Pratt held a fee simple subject to condition subsequent. At his death his surviving spouse asserted curtesy. The court determined the curtesy remained subordinate to the power of termination retained by the original grantor because the condition had not been destroyed by transfer.
Paula Pierce conveyed land in fee simple subject to condition subsequent and retained a power of termination. A creditor sought to reach the land through the estate. The court upheld the conveyance because the retained power did not destroy the present interest conveyed to the grantee.
No. The owner of a power of termination has no power to transfer the interest by conveyance during life. The attempted assignment conveys nothing and leaves enforcement authority with the original grantor or heirs.
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A power of termination follows a fee simple subject to condition subsequent and requires affirmative exercise by the holder to end the estate. A possibility of reverter follows a fee simple determinable and becomes possessory automatically upon the limiting event.
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The estate does not terminate automatically. The power must be exercised by entry or equivalent act before the possessory estate ends.
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Yes. The interest passes to heirs or devisees upon the holder's death even though it cannot be assigned inter vivos.
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…trust, and that the trust therein passed a present interest to the beneficiary, subject to being defeated by the settlor’s power of termination or power to alter and amend the trust. The foregoing Illinois cases, while distinguishable from the instant case, do exhibit a tendency upon the part of this court to permit a settlor to…