Also known as: springing executory interest · shifting executory interest · springing executory interests · shifting executory interests · executory interests
Written by attorneys · grounded in primary & secondary sources — see below
A future interest created in a transferee that divests a prior estate rather than awaiting its natural termination. Springing executory interests divest an interest retained by the grantor. Shifting executory interests divest an interest held by another grantee.
Scott Summers holds a fee simple conditional under his uncle's deed with an executory interest in favor of his cousin Timothy if Scott dies without surviving issue. Before any children are born, Scott conveys the parcel in fee simple absolute language to Sterling Dynamics. Sterling Dynamics records the deed and begins development. Timothy's executory interest remains superior to any interest Sterling Dynamics acquired.
A grantor structures a conveyance creating an executory interest that may vest on one of two alternative events. One contingency satisfies the rule against perpetuities while the other does not. The court upholds the valid contingency and enforces the executory interest that divests the prior estate upon that event.
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Remainders take effect upon the natural expiration of a prior estate. Executory interests instead divest a prior interest that has already vested. Springing executory interests cut short an interest retained by the grantor. Shifting executory interests cut short an interest held by another grantee.
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Yes. These interests are created in transferees and may vest too remotely. They are therefore subject to the rule unless an exemption applies. Retained interests such as possibilities of reverter are exempt, but executory interests in third parties are not.
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The conveyance creates interests equivalent to those a fee simple absolute owner could create. All such interests remain subordinate to any valid executory interest limited after the conditional fee. The executory interest therefore retains priority even after the conveyance.
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