Real Estate Ownership, Land Use Controls, and Financing Practice Test

Future interests are the property interests that will take effect in the future, after the present possessory estate ends. Remainder and reversion are classic types within this category. A remainder is a future interest in a person (often a third party) that becomes possessory when the prior estate ends, such as when someone holds a life estate and a future interest is set to whoever is named after that life estate ends. Reversion is the interest that stays with the grantor when no other future interest is created for someone else; when the prior estate ends, ownership reverts back to the grantor (or the grantor’s heirs) if nothing else is specified. Since the question asks for the broad term that describes these future interests, the umbrella term is Future Interests. The other options refer to specific types (remainder and reversion) or to widow’s rights unrelated to the general category of future interests.