Vested Legacy: What It Means for Beneficiaries and Their Rights

Definition & Meaning

A vested legacy is a type of inheritance that grants a legatee an unconditional and absolute right to receive a specific payment or property. This right is established through the clear language of a will, indicating that the legatee has a transmissible interest, either immediately or in the future. Generally, a vested legacy becomes payable when the legatee reaches the age of twenty-one, although the enjoyment of the legacy may be deferred until that age.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A grandmother leaves a sum of money to her grandson in her will, stating that he will receive it when he turns twenty-one. This is a vested legacy, as the grandson has a clear right to the money, even though he cannot access it until he reaches the specified age.

Example 2: A testator bequeaths a house to their child, with the stipulation that the child will inherit it upon turning twenty-one. The child has a vested interest in the property, which will be realized at the specified age. (hypothetical example)

State-by-state differences

State Vested Legacy Rules
California Vested legacies are recognized, and beneficiaries typically receive their inheritance at age eighteen.
New York Similar to California, but with specific provisions for interest accrual on deferred payments.
Texas Vested legacies are also recognized, with the same age threshold for payment.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Description Difference
Contingent Legacy A legacy that depends on a specific condition being met. A vested legacy is guaranteed, while a contingent legacy is not.
Bequest A general term for a gift made in a will. A vested legacy is a specific type of bequest that is unconditional.

What to do if this term applies to you

If you are a legatee expecting a vested legacy, ensure you understand the terms laid out in the will. Consider consulting a legal professional to clarify your rights and obligations. You can also explore US Legal Forms for templates that help with estate planning and understanding your inheritance rights.

Quick facts

  • Typical age for payment: twenty-one years
  • Nature: Unconditional and absolute
  • Legal areas: Estate planning, probate law
  • Interest: May accrue during deferment

Key takeaways

Frequently asked questions

A vested legacy is an unconditional right to receive a specific inheritance, typically payable when the legatee reaches a certain age.