Written by attorneys · grounded in primary & secondary sources — see below
A classification assigned to the future interest of each existing member of a class gift that remains open to new entrants. The interest may be vested or contingent. The future interest of any potential class member who has not yet satisfied the conditions for membership is always classified as contingent.
Sources & Authorities
How it applies
Common Examples
2
Vineyard Workers Class Gift
Corey placed her Silver Ridge Estate farmland in trust for distribution to all full-time vineyard workers employed during the harvest season after her youngest child's fiftieth birthday. Elijah has worked full-time at the estate for twelve consecutive years and states he will remain until the harvest eight years from now. Because the class gift is postponed until after the youngest child's fiftieth birthday and the terms permit additional workers to enter the class during the intervening years, Elijah's interest is classified as subject to open.
Life Estate to Former Clerks
Javier executed a will leaving his office condo to his niece Tina for her life. Following the termination of Tina's life estate the condo passes to whichever of Javier's former law clerks has made partner in any law firm by the time of Tina's death. Michelle made partner five years ago and remains eligible to share with any later-qualifying clerks. Because the class gift remains open until Tina's death, Michelle's interest is classified as subject to open.
Put it into practice
Test Yourself
10
Practice Questions5
· 21 sources
Select any source to read its text and confirm it supports the definition.
Restatements
Casebooks
Course Outlines
Study Supplements
Dictionaries
Blanchard v. Ward244 N.C. 142, 146, 92 S.E.2d 776, 779
Common questions
Frequently Asked
4
How does the classification of an interest as subject to open differ from a contingent interest?+
An interest subject to open belongs to an existing class member and is certain to become a present interest in some share. A potential class member's interest is always classified as contingent because that person has not yet satisfied the conditions for membership.
Supporting sources
Can an interest classified as subject to open still be contingent rather than vested?+
Yes. The future interest of each existing class member is classified as subject to open and may be either vested or contingent under the principles set forth in the Restatement.
Supporting sources
What happens to the share of a class member whose interest is subject to open when new members join the class?+
The share is subject to decrease in amount or proportion because additional persons may later qualify under the descriptive language used to designate the persons to take the future interest.
Supporting sources
Why does the law prefer to classify remainders as vested subject to open rather than contingent?+
The classification avoids treating the remainder as contingent when its eventual possession by the class is assured. It also affects transferability and how the interest is treated in bankruptcy or creditor claims.
Supporting sources
Trusts and Estates Decedents EstatesWills · Construction problemsUBEFoundational