Future interest refers to a legal right that a current property owner has to receive benefits from that property at a later time. It does not grant the owner immediate possession or enjoyment of the property. Future interests are often associated with a type of property ownership known as a defeasible estate, which can be revoked under certain conditions.
Future interest is primarily used in property law. It is relevant in various legal contexts, including estate planning, real estate transactions, and inheritance matters. Individuals can manage future interests through legal documents like wills or trusts. Users can utilize US Legal Forms to access templates that help them create the necessary legal documents to establish or transfer future interests.
Here are a couple of examples of abatement:
Example 1: A property owner creates a trust that states their child will inherit the family home when they turn 21. The child's future interest in the property is established, but they cannot use or sell the home until they reach that age.
Example 2: A person grants a life estate to a friend, allowing them to live in the property for their lifetime. Upon the friend's death, the property will pass to the original owner's heirs, creating a future interest for them. (hypothetical example)
| State | Future Interest Rules |
|---|---|
| California | Allows for various types of future interests, including contingent remainders. |
| New York | Recognizes future interests but has specific rules regarding their creation and transfer. |
| Texas | Future interests must be clearly defined in legal documents to be enforceable. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Life Estate | A property interest that lasts for the life of a specified individual. | Life estates provide immediate possession, while future interests do not. |
| Remainder Interest | A future interest that becomes possessory upon the termination of a preceding estate. | Remainder interests are a specific type of future interest. |
If you have a future interest in a property, consider consulting with a legal professional to understand your rights and obligations. You can also explore US Legal Forms for templates that can help you manage or establish future interests effectively.
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A future interest is a legal right to receive benefits from property at a later time, without immediate possession.