Also known as: estate and future interest · estates in land and future interests · future interests · estates in land
Written by attorneys · grounded in primary & secondary sources — see below
A doctrinal framework dividing ownership of land into present possessory estates and future interests that may ripen into possession upon termination of prior estates.
Damian conveyed a commercial building to Stone Eats but provided that if the premises were ever used for a drive-thru restaurant then title would shift to Southern Bistro. Stone Eats later announced plans to add a drive-thru window. Southern Bistro's interest became ready to take effect as a future interest upon the occurrence of the stated condition.
Morgan conveyed a historic mansion to Phoebe for life with the remainder to the Museum provided it continued operating a public gallery after her death. Phoebe later mortgaged the property. The Museum's interest remained a future interest because it could become possessory only upon the natural termination of Phoebe's life estate.
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The Symphony Space granted Pergola Properties an option to purchase the theater property exercisable only after a fixed future date. The option holder asserted rights under the agreement years later. The interest qualified as a future interest because it postponed the right to possession until the designated time arrived.
Jaber conveyed property to Miller under an agreement that created successive possessory rights measured by duration. Miller claimed present rights while Jaber retained a future interest. The conveyance divided ownership into a present estate and a postponed interest that could become possessory later.
Coal operators held fee estates subject to state restrictions requiring support for surface structures. The restrictions limited extraction and preserved future surface interests. The regulatory scheme operated on the division between present mining rights and retained future interests in surface support.
A divorce decree awarded custody of children to one parent with visitation rights to the other. The noncustodial parent sought modification years later. The decree created present possessory rights in one parent and a future interest in possession for the other upon changed circumstances.
A future interest is not presently possessory but may become so upon the termination of a prior estate. A present estate entitles the holder to immediate possession. The distinction turns on whether the right to possession is postponed.
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Yes. An executory interest is created by an executory limitation and shifts possession upon the occurrence of a stated event. It operates to cut short the preceding estate rather than await its expiration.
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The possibility of reverter passes under the grantor's will to the designated successors. It remains a future interest until the condition precedent occurs and does not require release or recording to remain effective.
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Yes. A remainder cannot divest any interest except one left in the transferor. If the interest can cut short a simultaneously created estate in a transferee, it is an executory interest instead.
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Yes. The owner of a reversionary interest may convey it by deed. The transfer is effective upon delivery and does not require court approval or additional formalities beyond those for any conveyance of a future interest.
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…were not compelled to answer it there and a decision on it was expressly reserved. Separated as our issue is from that of the future interests of the children, we have before us the elemental question whether a court of a state, where a mother is neither domiciled, resident nor present, may cut off her immediate right to the care,…