An Executory Interest is a future interest, held by a third party transferee (i.e. someone other than the grantee), which either cuts off another's interest or begins after the natural termination of a preceding estate. It differs from a remainder.
Two types of executory interests
There are two different types of executory interests: shifting and springing.
Shifting executory interest
A shifting executory interest always follows a defeasible fee and cuts short someone other than the grantor. For example, if O conveys property “To A and her heirs, but if B returns from Canada sometime next year, to B and his heirs”; here, B has a shifting executory interest, and A has a fee simple subject to this shifting executory interest.
Springing executory interest
A springing executory interest cuts short the grantor of the property. For example, if O conveys property “To A, if and when he marries”; here, A has a springing executory interest, and O has a fee simple subject to this springing executory interest.
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