A future estate refers to a form of property interest in which the right to possess or enjoy the property is not immediate but will occur at a later time. This can apply to the person who granted the property (such as a reversion) or the person who received it (such as a remainder or executory interest). It is commonly utilised for stocks and debt securities and can be sold by a trustee. It is also known as a future interest, expectant estate, estate in expectancy, or nonpossessory estate.
A future estate, also known as a future interest, refers to a property interest where the right to possess or enjoy the property is not immediate but will occur at a later time. This type of interest can be held by either the grantor (the person who granted the property) or the grantee (the person who received it). For instance, if a person grants their property to their child for their lifetime and then to their grandchild, the grandchild would have a future interest in the property. However, they would not have the right to possess or enjoy the property until their parent passes away. Nowadays, future interests are commonly found in stocks and debt securities, which can be sold by a trustee. It is important to understand that a future interest is an existing interest that is established at the time of creation. Although it is considered part of the overall ownership of the property, the actual possession or enjoyment of the property will occur in the future.
A future estate refers to a legal interest in a property that will only take effect at a later date, typically after the occurrence of a specific event or the expiration of a certain period of time.
The most common types of future estates include the remainder interest, where ownership will pass to a third party after the current owner’s death, and the reversionary interest, where ownership will revert back to the original owner or their heirs.
A future estate can be created through a legal instrument such as a will, trust, or deed, which specifies the conditions under which the future interest will become possessory.
Yes, a future estate can be sold or transferred to another party, subject to any restrictions or conditions set forth in the legal instrument creating the future interest.
If the conditions for a future estate are not met, the future interest may not become possessory, and the property may pass to another party or revert back to the original owner, depending on the specific terms of the legal instrument.
Yes, a future estate can be inherited by the designated heirs or beneficiaries, as specified in the legal instrument creating the future interest.
Yes, like any other legal interest, a future estate can be challenged in court if there are disputes or disagreements regarding its validity, interpretation, or fulfillment of conditions.
In some cases, a future estate can be revoked or modified if all parties involved agree to the changes and follow the necessary legal procedures. However, this may depend on the specific terms and conditions set forth in the legal instrument creating the future interest.
Yes, there may be tax implications associated with a future estate, such as inheritance taxes or capital gains taxes, depending on the jurisdiction and the value of the property involved. It is advisable to consult with a tax professional or attorney to understand the specific tax implications in your situation.
In some cases, a future estate can be used as collateral for a loan, but this may depend on the lender’s policies and the specific terms and conditions of the future interest. It is recommended to consult with a lender or attorney to determine the feasibility and requirements for using a future estate as collateral.
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.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/future-estate/
- Modern Language Association (MLA):Future Estate. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/future-estate/.
- Chicago Manual of Style (CMS):Future Estate. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/future-estate/ (accessed: May 09 2024).
- American Psychological Association (APA):Future Estate. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/future-estate/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts