Understanding Vested Interests in Property Transfer
Explore the concept of vested interests in property transfers, including their characteristics, implications, and examples. Learn how vested interests are distinguished from contingent interests and the rights they confer to beneficiaries.
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Presentation Transcript
Vested Interest Vested Interest
Vested Interest Vested Interest (Section 19) (Section 19) An interest created on a transfer of property in favor of a person is vested interest when.. 1. no time specified for it to take effect, or 2. it is expressed to take effect forthwith, or 3. it will take effect on the happening of an event which must happen. Vested interest is not barred because of death of transferee before obtaining possession.
Illustrations Illustrations A B to Transfers 100 tk To be paid upon attaining 18 years of age
a Property A B to then Is Transferred For life Vested or Contingent
Explanation Explanation A vested interest is always vested interest even though .. a. the enjoyment is postponed b. a prior interest is created c. income arising from property directed to be accumulated until the time of enjoyment arrives d. interest may pass to another person if certain event heppens
Nature of vested interest Nature of vested interest Once an interest on property vested , it becomes property to transferee. Transferee may sell his interest even before obtaining possession under section 6. In case of death of transferee the legal representative of him is vested with interest.
Interest created under Trust Interest created under Trust Rajes Kanta Roy vs. Smt., Shanti Debi ..Trust created by a registered deed in respect of property of Ramani Kanta Roy. Rajesh kanta Roy her son was sole trustee. Ramani Kanta died. Two son of settelor under deed was the beneficiaries after fulfillment of two condition , one is after paying debt of settlor and another after death of their mother. whether interest vested or contingent? Sundor Bibi vs. Rajendro Narayon 1925
Vested interest acquired by unborn person Vested interest acquired by unborn person (Section 20) (Section 20) A Transfers property to trustee in favor of his upcoming child with a direction that income arises from property for ten years from the birth of child will be saved and then to hand over to child after ten years.
