Also known as: future possessory interests · future interest · future interests
Written by attorneys · grounded in primary & secondary sources — see below
A future interest in land that entitles its holder to possession at a later time rather than immediately. The interest arises when a grantor conveys a present possessory estate while retaining or creating a right to future possession in the grantor or a third party under the rules governing creation of estates.
Frederick Ferguson conveyed Blackacre to his niece for life with the remainder to return automatically to his estate upon her death. The niece took immediate possession and began farming the land. Upon the niece's death without surviving issue, the estate's retained interest matured into present possession for Frederick's heirs.
Forrest Falconer granted a commercial building to a nonprofit theater company for its operations but reserved an option to repurchase if the company ever ceased performances. The company held present possession while Forrest retained the future interest. When the company abandoned live shows, the future interest allowed Forrest to exercise the option and regain possession.
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Farah Fox conveyed a strip of land to a railroad for track purposes with the deed providing that the land would revert if rail service ended. The railroad held a limited possessory right while Farah retained the future interest. When the tracks were abandoned decades later, the future interest ripened into full ownership for Farah's successors.
Felix Franco subleased warehouse space to a tenant for five years while retaining a reversion that would return possession to him at the end of the term. The tenant held present possession during the lease. Upon expiration of the sublease without renewal, the future interest entitled Felix to immediate repossession of the space.
Freya Freeman and her spouse held property as tenants by the entirety. Upon the spouse's death, Freya's survivorship right converted her interest into full present possession. The future interest created by the tenancy form allowed seamless transfer without probate proceedings.
Floyd Franklin's will attempted to create successive future interests in a parcel after a life estate to his children. The drafting violated the rule against perpetuities. The future interests failed, causing the property to pass instead under the residuary clause to Floyd's heirs at law.
A future possessory interest entitles the holder only to possession at a later time. A present possessory interest gives the holder the immediate right to possession and use of the land.
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Yes. A single conveyance can simultaneously create a present possessory estate in one party and a future possessory interest in the grantor or a third party, provided the limitations comply with the governing rules for estates.
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The future possessory interest automatically becomes a present possessory estate. The holder is then entitled to immediate possession without further action by the original grantor.
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…is an appeal from a decree of the Chancery Court of Alcorn County. It directs a sale of land affected by a life estate and future interests with provision for the investment of the proceeds. The interest therefrom is to be paid to the life tenant for her maintenance. We reverse and remand. John Harrison Weedon was born in High…