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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. An executory interest is a future interest in the transferee. It becomes possessory by divesting the prior estate. It may cut the prior estate short (shifting) or spring out of the grantor at a future date. An executory interest is a future interest in a transferee that must divest an interest in another transferee or spring out of the transferor at some future time to become possessory. They may be shifting or springing or not. An interest in a transferee following a determinable fee is an executory interest. It does not shift or spring. Before 1536, shifting and springing interests were not recognized at law. However, they were recognized in equity.
