Executory Interest Law and Legal Definition

Executory Interest is a future interest, held by a third person, that either cuts off another's interest or begins after the natural termination of a preceding estate. It is an executory interest created in a person other than the transferor . Here are five classic examples of executory interest: (1) O transfers 'to A for life; then, one day after A's death, to the heirs of A.' The transfer creates a springing executory interest in those who will be A's heirs. (2) O transfers 'to A for 200 years if he shall so long live, then to the heirs of A.' This transfer also creates a springing executory interest in A's prospective heirs. (3) O transfers 'to A and his heirs five years from the date of this deed.' A owns a springing executory interest. (4) O, when B is fifteen, transfers 'to A for life; then no sooner than one day after A's death, to B and his heirs if B ever reaches B owns a springing executory interest. (5) O transfers 'to A and his heirs; but if A marries X, to B and his heirs.' B owns a shifting executo¬ry interest.