Also known as: reversionary right · reversionary interest
Written by attorneys · grounded in primary & secondary sources — see below
A future interest retained by a transferor or the transferor's successor after conveying a present estate that does not exhaust the entire ownership bundle. The interest becomes possessory upon the natural termination of the granted estate.
Rebecca Ross conveyed a parcel to Riverfront Developments for life. When the life tenant died, Rebecca's retained future interest allowed her to recover possession because the conveyance had left an unconditional reversionary interest in her.
Rhea Reynolds granted her daughter a general power of appointment over trust assets with no default takers named. After the daughter made an ineffective appointment, the assets passed to the daughter's estate rather than creating a reversionary interest in Rhea's successors.
Select any source to read its text and confirm it supports the definition.
Ruby Rivera devised property to her heirs at law without other disposition language. Because the worthier title doctrine no longer operates, the language did not create a reversionary interest in Ruby's estate and the heirs took directly.
Robert Rivera conveyed land to Riverstone Manufacturing while retaining a reversionary interest. Robert later executed a deed transferring that interest to his niece Rosa Ruiz, who then held the future interest and could enforce it upon the stated event.
Ralph Richardson granted his son a general power over trust principal with no default clause. When the son released the power without exercising it, the unappointed property passed under a reversionary interest to Ralph's successors rather than to the son's estate.
Radiant Technologies granted a nongeneral power to a trustee with no default takers and no intent that permissible appointees take only upon exercise. When the trustee failed to exercise the power, the unappointed property passed under a reversionary interest to the donor's successors.
A reversionary interest is any future interest left in the transferor. It qualifies as a reversion when not subject to a condition precedent and as a possibility of reverter when subject to one.
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Yes. The owner may convey the reversionary interest or any part of it by an otherwise effective inter vivos deed.
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The property passes to the donee's estate rather than under a reversionary interest to the donor or the donor's successors.
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No. The doctrine of worthier title is abolished, so such language does not create or presumptively create a reversionary interest in the transferor.
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It does so when the gift-in-default clause is inapplicable and the permissible appointees are not a defined class that the donor intended to benefit without exercise.
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…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…