Executory Interest
/ɪɡˈzekjʊtəri ˈɪntərɪst/
Definitions
- (n.) A future interest held by a third party that will divest a prior estate upon the occurrence of a specified condition or event.
The grant created an executory interest shifting ownership if the land ceased to be used for farming.
Forms
- executory interest
- executory interests
Related terms
See also
Commentary
Executory interests cut short a prior estate and are distinct from remainders, which do not divest earlier estates. Draft carefully to clarify the condition triggering the interest.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.