Future Interests
A future interest is a presently existing interest, though not a presently possessory interest.
Types of Future Interests in the Transferor:
- Reversion – occurs whenever a lesser estate is transferred
- Possibility of Reverter – fee simple determinable
- Right of Entry – fee simple subject to condition subsequent
Types of Future Interests in the Transferee:
Vested Remainder – person is ascertained/no condition precedent
- Indefeasibly vested – not subject to divestment
- Vested subject to open – subject to partial divestment
- Vested subject to (complete) divestment – subject to condition subsequent
Contingent Remainder – party is not ascertainable and/or subject to condition precedent
Executory Interest
- Shifting – divests another transferee
- Springing – divests the transferor
Tips for Application:
- A remainder must have a prior supporting estate (must be capable of becoming possessory
immediately upon the end of the prior estate).
- If the first remainder is contingent, the second remainder will be contingent also.
- If the first future interest is a vested remainder subject to divestment, the second one must be
an executory interest rather than a remainder.
- Every life estate is accompanied by a reversion in the transferor and/or a future interest in a
transferee.
- A fee following a fee is an executory interest.
- A fee following a gap in seisin is an executory interest.