Also known as: future interest · future estates
Written by attorneys · grounded in primary & secondary sources — see below
Interests in property that confer a right to possession or enjoyment at a future time rather than immediately. These interests arise when ownership is divided so that one party holds present possession while another holds the right to take possession later upon the occurrence of a specified event or the expiration of a prior estate.
Francesca Fiore conveyed Blackacre to Felix Franco for life with the remainder to go to Frank Fisher upon Franco's death. Fisher holds a future interest that will become possessory only after Franco dies. The deed language divides ownership so that Franco enjoys present possession while Fisher awaits the future right to possession.
John Weedon devised land to his wife for life with the remainder to his grandchildren. The wife held the present life estate while the grandchildren held future interests that would become possessory only upon her death. The court addressed whether the future interests justified selling the land to provide for the life tenant's maintenance.
Select any source to read its text and confirm it supports the definition.
A mother sought custody of children after a prior decree awarded custody to the father in another state. The future interests of the children in continued parental care were at stake in determining whether the out-of-state decree bound the mother. The Court examined whether personal jurisdiction over the mother was required before her rights to future custody could be cut off.
The United States conveyed land to a railroad subject to a future interest that would revert if the land ceased to be used for railroad purposes. The Brandt Revocable Trust later acquired the servient estate and claimed the future interest had been extinguished. The Supreme Court addressed whether the future interest remained valid after abandonment of the railroad line.
A settlor transferred property into a trust directing income to a beneficiary for life with the corpus to pass to the settlor's heirs upon the beneficiary's death. The heirs held a future interest that would become possessory only after the life beneficiary died. The court considered whether the future interest violated the rule against perpetuities.
Symphony Space granted Pergola Properties an option to purchase a theater building exercisable only after a specified future date. Pergola held a future interest in the form of an executory interest that would become possessory if the option were exercised. The court examined whether the future interest violated the rule against perpetuities.
A future interest gives its holder only the right to possession or enjoyment at a later time. A present estate gives the holder the immediate right to possession. The distinction turns on whether the right to possession is postponed until a future event occurs.
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Reversions, possibilities of reverter, and rights of entry are retained by the grantor. Remainders and executory interests are created in a transferee. The classification depends on whether the creating instrument leaves the interest with the grantor or conveys it to someone else.
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No. Interests that are neither remainders nor executory interests and that remain in the conveyor or the conveyor's successors are exempt from the rule against perpetuities. This exemption applies because retained interests do not create the same risk of remote vesting in third parties.
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The holder of a future interest may recover damages or obtain an injunction against waste that damages the land. Modern law extends this protection to mortgagor-mortgagee relationships as well. The duty arises from the relationship between the present and future interests.
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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,…