The Rule in Shelley’s Case is derived from the English case, Wolfe v. Shelley (1581) and refers to a rule in property law that generally applies to the right to possess property in the future. The Rule in Shelley’s Case states that when a grantor gives real property to a grantee, if the grantor wishes, they can prohibit the grantee from conveying the future interests of the possessory interest in the real property to their heirs.
Courts generally construe the Rule in Shelley’s Case as a remainder in fee simple in the grantee. Also, the Rule in Shelley’s Case only applies to indefinite heirs. Thus, the rule does not apply when the grantor intends to create a future interest in an immediate or specific heir. For example, if the grantor states that the land shall pass to a specific child of the grantee, then the Rule in Shelley’s Case does not apply.
The Rule in Shelley’s Case is abolished in all but two jurisdictions.
[Last updated in April of 2024 by the Wex Definitions Team]
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