Future Interest

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Future Interest

A claim on property, real or personal, that will begin at some point in the future. A future interest allows the grantor to retain the right to use that property until the specified transfer date. Future interest agreements are often used by donors for tax purposes. For example, a person may grant a future interest in his or her home to a charity, with the stipulation that he will retain use of the home for the remainder of his life, also called a "life estate." Although the charity will not receive the property until the donor's death, the donor can claim a tax deduction the same year the future interest is granted. Also called future estate.


Bequest; Will.

future interest

n. a right to receive either real property or personal property some time in the future, either upon a particular date or upon the occurrence of an event. Typical examples are getting title upon the death of the person having present use, outliving another beneficiary, reaching maturity (age 18), or upon marriage.

References in periodicals archive ?
How shall the drafter decide which events should bring an end to the spendthrift's determinable interest? After considering various possibilities, the authors of these books conclude that the best term is one that makes the beneficiary's interest determinable at the discretion of the trustees.
While no brief discussion can analyze all factors, ultimately tile proper characterization looks to tile existence of typical debt characteristics such as a fixed maturity date, a fixed or determinable interest rate and typical creditor remedies, such as foreclosure.