Also known as: non-reversionary future interest · nonreversionary future interests · nonreversionary future interest · future interests
Written by attorneys · grounded in primary & secondary sources — see below
Future interests in land created in a transferee rather than retained by the grantor. They consist of remainders, which await the natural termination of a prior estate, and executory interests, which divest or spring from a prior estate upon a stated event.
Morgan conveyed his mansion to Phoebe for life with the remainder to the Museum if it continued gallery operations after her death. The Museum received a non-reversionary future interest because the deed transferred the interest directly to the Museum as a transferee rather than retaining it in Morgan. When Phoebe later mortgaged the property, the Museum's interest remained intact as a remainder awaiting the life estate's natural end.
John Weedon devised land to his wife for life with the remainder to his grandchildren. The grandchildren held non-reversionary future interests in the form of remainders. When the wife sought a sale of the land for her support, the court examined whether the remainders would be adequately protected by investing the proceeds.
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A tenant subleased property and reserved a right of reentry for nonpayment of rent. The sublessor claimed the reservation created a reversionary interest, but the court analyzed whether the interest was instead a non-reversionary executory interest created in a transferee. The distinction determined whether the original landlord could enforce rights against the sublessee.
Symphony Space granted Pergola Properties an option to purchase property exercisable more than twenty-one years after lives in being. The option created a non-reversionary future interest in Pergola that was subject to the rule against perpetuities. The court invalidated the option because the interest might vest too remotely.
Non-reversionary future interests are created in a transferee by the grantor, while reversionary interests are retained by the grantor or the grantor's successors. The traditional classification places remainders and executory interests in the non-reversionary category.
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Yes. Both remainders and executory interests may be created by deed or by will provided the limitation complies with the rules for creating future interests in a transferee.
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Executory interests and contingent remainders are subject to the rule against perpetuities and are void if they might vest too remotely. Vested remainders are generally not subject to the rule.
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No. The holder of a non-reversionary future interest has no right to possession until the preceding estate ends or the divesting condition occurs. The interest is protected against waste or impairment by the possessory owner.
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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…