Future interest - sustany/dvg GitHub Wiki

In�property law,�future interest is the right to possess property in the future.�

A future interest is in direct contrast with a present right to property, also referred to as a�possessory estate.� A future interest may be conditioned upon the occurrence of a certain condition or event, or it can also be unconditional.�

Future interests are created at the formation of a defeasible estate.� The future interest will either take effect following the natural termination of the prior estate or will cut short�the prior estate.

Life Estate

A life estate is a future interest that will result in ownership of the property only after the present possessory estate�has run its course.

When a life estate is assigned, there are certain interests that may force the life estate to end early, which will shorten the life estate.�

Executory Interest

An�executory interest�is a�future interest in property that will be triggered on the happening of a stated event and will pass the property to a third party.�

Non-Executory Interest

Executory interests will pass the property to a third party, however, there are future interests that will return the property to the�grantor�upon the triggering of a certain condition.�There are two kinds of these interests:

• Right of Entry�(also known as "power of termination")
  • If the condition is violated, the grantor has the voluntary right to reclaim the estate.
• Possibility of Reverter
  • If the condition is violated, the estate is automatically restored to the grantor.

Further Reading

For more on future interests, see this�Washington and Lee Law Review article, this�Seattle University Law Review article, and this�Vanderbilt University Law School publication.