The Power of the Original Document
Arizona protects future property interests from being destroyed by the current property holder. But there is an important counterpart to that protection: the person who originally created the future interest can build in conditions that allow it to be defeated.
An estate in expectancy may be defeated in any manner provided or authorized by the grant or devise by which the expectant estate was created.
A.R.S. § 33-226(A)This means the grantor or testator has significant control over the terms. They can include conditions that must be met, specify events that would trigger a forfeiture, or grant specific powers to other parties to modify or terminate the future interest. The key is that these provisions must be spelled out in the original document.
Defeasible Does Not Mean Void
An important clarification in this statute: just because a future interest can be defeated does not mean it was never valid in the first place.
An estate in expectancy thus defeasible is not, on that ground, void in its creation.
A.R.S. § 33-226(B)A defeasible future interest is a real property right from the moment it is created. It can be transferred, inherited, and enforced. The fact that it might be undone under certain conditions does not make it any less valid until those conditions actually occur.
For anyone creating property arrangements that include future interests, this statute highlights the importance of careful drafting. The original document controls what can and cannot happen to the future interest down the road. Working with experienced estate planning counsel ensures those terms reflect exactly what you intend.
