A future interest, also referred to as an estate in expectancy, is a form of property ownership that does not grant immediate use or enjoyment of the property, but rather at a later time. This type of ownership can pertain to the current owner of the property, such as a reversion, or to a future owner, such as a remainder or executory interest. Future interests are commonly found in debt securities and stocks, and can be sold by a trustee. It is important to note that despite the lack of immediate use or enjoyment, a future interest is still considered a component of the overall ownership of the property.
A future interest, also known as an estate in expectancy, refers to a property interest where the right to possess or enjoy the property is not immediate but will arise in the future. This type of interest can be held by either the grantor or the grantee. For instance, if a person grants their property to their child for their lifetime, with the property then passing to their grandchild after the child’s death, the grandchild has a future interest in the property. They cannot possess or enjoy the property until their parent passes away. Similarly, if a person grants their property to a charity for a specific period, with the property then passing to their child after that time, the child has a future interest in the property. They cannot possess or enjoy the property until the charity’s term ends. In essence, an estate in expectancy is a property interest that will only come to fruition in the future, not in the present.
An estate in expectancy is a legal term that refers to a person’s right to inherit property or assets upon the death of another person.
Anyone who is named as a beneficiary in a will or trust can have an estate in expectancy.
If the person who is supposed to leave the estate in expectancy dies before the person who is supposed to inherit it, the estate will pass to the deceased person’s heirs or beneficiaries.
Yes, an estate in expectancy can be sold or transferred to another person.
If there are multiple beneficiaries named in a will or trust for the same estate in expectancy, they will typically share the estate equally.
Yes, an estate in expectancy can be contested if there is a dispute over the validity of the will or trust, or if there is a disagreement among the beneficiaries.
An estate in expectancy lasts until the death of the person who is supposed to leave the estate to the beneficiary.
If the person who is supposed to leave the estate in expectancy changes their will or trust, the estate may be distributed differently or may no longer be available to the beneficiary.
Yes, an estate in expectancy may be subject to estate taxes upon the death of the person who is supposed to leave the estate to the beneficiary.
If you have questions about an estate in expectancy, you should consult with an experienced estate planning attorney who can provide guidance and advice based on your specific situation.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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