Also known as: reversionary interests
Written by attorneys · grounded in primary & secondary sources — see below
A future interest retained by a transferor or the transferor's successor in interest after conveying a lesser estate in land or other property. The interest becomes possessory upon the natural termination of the conveyed estate. It is distinct from a possibility of reverter because it is not subject to a condition precedent.
Ryan Roberts conveyed Blackacre to Rachel Ramirez for life without any limiting condition. Upon Rachel's death the estate ends by its own terms. Ryan's retained future interest is a reversion because it is not subject to a condition precedent.
Ravi Reddy granted his daughter a general power of appointment over trust principal with no default takers named. The daughter attempted an appointment to an ineligible recipient. The principal therefore passes to the daughter's estate rather than under any reversionary interest to Ravi or his successors.
Select any source to read its text and confirm it supports the definition.
Ronald Reed's will devised property to his heirs at law. Because the doctrine of worthier title is abolished, the language does not create or presumptively create a reversionary interest in Ronald's estate.
Ruby Rivera retained a reversionary interest after conveying a life estate to Ricardo Rojas. Ruby later executed a deed transferring that interest to Ridgeway Partners. The conveyance is effective because the owner of any reversionary interest may transfer it by an otherwise effective inter vivos conveyance.
Ravi Reddy granted his son a general power of appointment over trust assets with no default takers. The son released the power. The unappointed property therefore passes under a reversionary interest to Ravi or his successors rather than to the son's estate.
Rachel Ramirez granted her niece a nongeneral power of appointment over trust principal with no default clause. The niece failed to exercise the power. The unappointed property therefore passes under a reversionary interest to Rachel or her successors.
A reversionary interest is any future interest left in the transferor. A reversion is the subset that is not subject to a condition precedent, while a possibility of reverter is the subset that is subject to a condition precedent.
Yes. The owner of any reversionary interest in land may transfer the interest or any part of it by an otherwise effective conveyance inter vivos.
When the donee releases a general power and no default takers are named, the unappointed property passes under a reversionary interest to the donor or the donor's successors rather than to the donee's estate.
No. The doctrine of worthier title is abolished, so such language does not create or presumptively create a reversionary interest in the transferor.
…The writ of waste expanded as the tenant’s right to possession grew stronger. Eventually, in order to protect the landowner’s reversionary interest, the tenant became obligated to make repairs and liable to eviction and damages if he failed to do so. Ibid. [^maj-31]: The land was so central to the original common law conception of a…