Legal Definitions - Springing executory interest

A springing executory interest is a legal term describing a future interest in property. It occurs when a property owner (known as the grantor) transfers property to another person or entity (the grantee), but specifies that the transfer will only become effective at a future time or upon the fulfillment of a particular condition. Until that future event occurs, the property remains with the original owner. Once the specified time arrives or the condition is met, the property automatically "springs" from the grantor to the grantee, without passing through any intermediate owner.

Here are some examples to illustrate this concept:

• Example 1: Future Date Transfer
  Imagine a grandmother, Mrs. Davis, owns a vacation home. She writes a deed stating, "To my grandson, Leo, five years from today." For the next five years, Mrs. Davis continues to own and use the vacation home. Once the five years have passed, ownership automatically transfers to Leo.
  Explanation: Mrs. Davis (the grantor) retains ownership for a specified period. At the end of that period, the property "springs" directly from her ownership to Leo (the grantee), fulfilling the condition of a future date.
• Example 2: Condition of Marriage
  Mr. Thompson owns a small apartment building. He executes a deed that reads, "To my daughter, Sarah, when she marries." Until Sarah marries, Mr. Thompson retains full ownership and control of the apartment building. The moment Sarah legally marries, the ownership of the building automatically transfers to her.
  Explanation: Mr. Thompson (the grantor) holds onto the property until a specific condition (Sarah's marriage) is met. Once that condition occurs, the property "springs" from Mr. Thompson's ownership to Sarah (the grantee).
• Example 3: Condition of Achievement
  A wealthy philanthropist, Ms. Chen, owns a large plot of undeveloped land. She drafts a legal document stating, "To the local community foundation, once they successfully raise $10 million for the new public park project." Ms. Chen continues to own the land until the foundation reaches its fundraising goal. Upon verification that the $10 million has been raised, the land automatically transfers to the community foundation.
  Explanation: Ms. Chen (the grantor) retains ownership of the land. The transfer to the community foundation (the grantee) is contingent upon a future achievement. When that achievement is met, the property "springs" from Ms. Chen's ownership to the foundation.