An estate in expectancy refers to a legal interest in property that a person will gain possession of in the future. This type of estate does not grant immediate ownership; instead, it becomes effective upon the conclusion of a prior estate. Essentially, it is a right to possess property that is contingent upon certain events, such as the death of a current owner or the expiration of a lease.
Estates in expectancy are commonly encountered in property law, particularly in matters involving inheritance and estate planning. This term is relevant in various legal contexts, including:
Individuals may use legal forms to establish their expectations regarding property rights, often found in templates provided by services like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A person inherits a house but cannot move in until the current owner, their parent, passes away. The child holds an estate in expectancy.
Example 2: A trust specifies that a beneficiary will receive property only after the death of the trustor. Until that event occurs, the beneficiary has an estate in expectancy. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Estates in expectancy are often used in conjunction with community property laws. |
| New York | Specific rules govern the creation of estates in expectancy in wills and trusts. |
| Texas | Estates in expectancy can affect property division in divorce proceedings. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Remainder | A future interest that becomes possessory upon the termination of a prior estate. | Remainders are specific types of estates in expectancy. |
| Reversion | The return of property to the original owner after a temporary estate ends. | Reversions are also a type of estate in expectancy but specifically revert to the original owner. |
If you believe you hold an estate in expectancy, consider the following steps:
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It is a future interest in property that will not vest until a prior estate ends.