Divided InterestsFuture Interests

Section § 1265.410

Explanation

This law outlines what happens when the government takes private property that has certain restrictions about how it can be used, linked with a future right to own that property. If the property was likely to break these use rules soon anyway, the person who would have owned it next gets paid for their potential future value. If the use rules were tied to benefiting another piece of land someone owns, and losing those rules harms that land, the landowner gets compensated for the loss. If the potential future ownership right isn't eligible for payment, but the property had to be used for charity or public service, the money from the government taking it must be used for a similar purpose along with the same future ownership expectation.

(a)CA Civil Procedure Code § 1265.410(a) Where the acquisition of property for public use violates a use restriction coupled with a contingent future interest granting a right to possession of the property upon violation of the use restriction:
(1)CA Civil Procedure Code § 1265.410(a)(1) If violation of the use restriction was otherwise reasonably imminent, the owner of the contingent future interest is entitled to compensation for its value, if any.
(2)CA Civil Procedure Code § 1265.410(a)(2) If violation of the use restriction was not otherwise reasonably imminent but the benefit of the use restriction was appurtenant to other property, the owner of the contingent future interest is entitled to compensation to the extent that the failure to comply with the use restriction damages the dominant premises to which the restriction was appurtenant and of which he was the owner.
(b)CA Civil Procedure Code § 1265.410(b) Where the acquisition of property for public use violates a use restriction coupled with a contingent future interest granting a right to possession of the property upon violation of the use restriction but the contingent future interest is not compensable under subdivision (a), if the use restriction is that the property be devoted to a particular charitable or public use, the compensation for the property shall be devoted to the same or similar use coupled with the same contingent future interest.
property acquisition public use use restriction ...

Section § 1265.420

Explanation
When a property with a life tenant is taken for public use, the court can decide how to manage the compensation. Options include splitting the compensation based on the value of different interests, buying a similar property for the life tenant, or investing the money and giving the life tenant the income. The court may also choose any fair solution under the circumstances.
Where property acquired for public use is subject to a life tenancy, upon petition of the life tenant or any other person having an interest in the property, the court may order any of the following:
(a)CA Civil Procedure Code § 1265.420(a) An apportionment and distribution of the award based on the value of the interest of life tenant and remainderman.
(b)CA Civil Procedure Code § 1265.420(b) The compensation to be used to purchase comparable property to be held subject to the life tenancy.
(c)CA Civil Procedure Code § 1265.420(c) The compensation to be held in trust and invested and the income (and, to the extent the instrument that created the life tenancy permits, principal) to be distributed to the life tenant for the remainder of the tenancy.
(d)CA Civil Procedure Code § 1265.420(d) Such other arrangement as will be equitable under the circumstances.
life tenancy public use property acquisition compensation distribution ...