Common Types of Future Interests
The most common future interest in estate planning is a remainder interest. Say a property owner creates a life estate for one person. The remainder interest goes to whoever receives the property after that person dies. Other types include reversionary interests, where property returns to the original owner. Executory interests shift property to a new owner when a triggering event occurs.
Transferability
Under Arizona law, future interests are "descendable, devisable and alienable." They can be inherited, left in a will, or sold. They work just like property you already possess. A future interest is not just an expectation. It is a real, enforceable property right from the moment it is created.
Why Future Interests Matter in Estate Planning
Understanding future interests helps you see the full picture of property ownership. If you hold a remainder interest in someone else's property, that interest is part of your estate. It can be included in your trust or passed to your heirs. Ignoring future interests can create gaps in your estate plan. Your family may face surprises.