Contingent interest

An interest that does not take effect until a condition (contingency) has been met. When the condition is met, the interest becomes a vested interest (www.practicallaw.com/9-383-4027).

Wills (www.practicallaw.com/resource.do?item=:42379240) and trusts (www.practicallaw.com/4-107-7416) often include interests that are contingent on reaching a certain age or on surviving another person. For example, Adam dies and leaves his estate (www.practicallaw.com/2-382-5620) to his son Brian absolutely, provided Brian reaches the age of 21. Brian has a contingent interest in his father's estate. On his 21st birthday, his interest vests and he gets the estate outright.

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