There are only two future interests that can be created in a transferee: remainders and executory interests. If it is not a remainder because the preceding estate is not a life estate, then it must be an executory interest.
An executory interest is an interest that divests the interest of another.
SHIFTING EXECUTORY INTEREST: divests the interest of another transferee, ie, cuts short a prior estate created by the same conveyance -- "to A and her heirs, but if B returns to B and her heirs"
SPRINGING EXECUTORY INTEREST: follows a gap or divests a transferor -- "to A when A marries B" or "to A for life and one year after A's death to B"
- Differences between executory interests and remainders:
- (1) EI's are not destructible, while contingent remainders are;
- (2) EI's are not considered vested, whereas CR's can be; and
- (3) the Rule in Shelley's Case does not apply to EI's, but it does apply to remainders limited to the heirs of a grantee.