Also known as: present interest · vested present interest
Written by attorneys · grounded in primary & secondary sources — see below
An interest in property that entitles the holder to immediate possession or enjoyment of the subject matter. The interest is not postponed to a future time and includes the right to current use or control without awaiting the expiration of a prior estate.
Patricia Patel conveyed land to Pedro Pacheco for life with remainder to Pablo Perez. When Pedro died, Pablo immediately took possession and began farming the fields. Pablo's interest operated as a present interest allowing him full current control without further conditions.
Precision Tools contracted to sell next year's harvest from a specific field to Prime Logistics. At signing the field remained bare and the seller had not decided what to plant. Prime Logistics held no present interest because the goods were neither existing nor identified.
Select any source to read its text and confirm it supports the definition.
A father wrote a letter gifting a valuable painting to his son while retaining possession until death. The son never received delivery during the father's life. The son held no present interest in the painting at the time of the attempted gift.
A settlor created trust interests for named beneficiaries with distribution powers retained by the settlor. The beneficiaries could not access funds or control the assets during the settlor's life. The beneficiaries held no present interests that qualified for annual gift tax exclusions.
Several individuals claimed they were excluded from a town by zoning practices and sought to assert rights to live there. None had ever resided in the town or secured specific housing. The individuals held no present interests sufficient to establish standing for the claims.
A trader conducted securities operations and credited portions of the profits to family members on his books. The family members never received the funds or exercised control during the year. The family members held no present interests in the allocated amounts for tax purposes.
A present interest gives the holder an immediate right to possession or enjoyment. A future interest postpones that right until a prior estate ends or a condition occurs. The distinction determines who may currently use or control the property.
Yes. A life estate entitles the tenant to immediate possession and use during the measuring life. The tenant may occupy the property and collect income without waiting for any intervening event.
A contract creates a present interest only when the goods are both existing and identified to the contract. An agreement for future goods such as an unplanted crop operates merely as a contract to sell rather than a present transfer.
No. The remainderman's right to possession or enjoyment is postponed until the life tenant dies. Until then the remainderman holds only a future interest.
…(1973). We find the record devoid of the necessary allegations. As the Court of Appeals noted, none of these petitioners has a present interest in any Penfield property; none is himself subject to the ordinance's strictures; and none has ever been denied a variance or permit by respondent officials. 495 F. 2d, at 1191. Instead,…