Future Interest


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Future Interest

A claim on property, real or personal, that will begin at some point in the future. A future interest allows the grantor to retain the right to use that property until the specified transfer date. Future interest agreements are often used by donors for tax purposes. For example, a person may grant a future interest in his or her home to a charity, with the stipulation that he will retain use of the home for the remainder of his life, also called a "life estate." Although the charity will not receive the property until the donor's death, the donor can claim a tax deduction the same year the future interest is granted. Also called future estate.

Cross-references

Bequest; Will.

future interest

n. a right to receive either real property or personal property some time in the future, either upon a particular date or upon the occurrence of an event. Typical examples are getting title upon the death of the person having present use, outliving another beneficiary, reaching maturity (age 18), or upon marriage.

See: reversion
References in classic literature ?
In the perilous uncertainty of our present situation, it is hard to say what future interests may not depend upon the regularity of the entries in my journal, and upon the reliability of my recollection at the time when I make them.
If by chance they are revolutionary, they are so only in view of their impending transfer into the proletariat, they thus defend not their present, but their future interests, they desert their own standpoint to place themselves at that of the proletariat.
Following her death, the IRS audited the estate and determined the gifts were not of a present interest but, instead, of a future interest, which meant additional gift taxes were due.
Tyler McCauley wrote that auditors were ``not able to verify the sufficiency of the amount in the interest fund to meet future interest requirements for deposits.
While future interest distributions for the classes A and B note holders are secure based on the presence of the cash flow swap, reliance on the swap would require reimbursement to the counterparty with principal proceeds, if necessary.
6 million thousand in cash with the trustee under the Indenture governing the Senior Notes as collateral in support of the Senior Notes (which cash collateral is also collateral in support of the Second Secured Notes, subject to being applied to satisfy future interest payment obligations on the outstanding Senior Notes).
The course concludes by looking at money market futures, one of the most convenient and useful instruments available to market participants looking to hedge an existing or future interest rate exposure.
54 billion if future interest payments are included, according to Fujioka.
Despite aggressive action by the Federal Reserve and indications of additional future interest rate cuts, the residential real estate market in New York City has felt the anxiety caused by the swooning stock markets, a cooling economy and the recognition that sales prices may have been inflated.
1 million had to be taken out of unrestricted cash for the settlement as money reclined for the payment of future interest to a value of US Dlrs 4.
In a memo Summers forwarded to Gephardt, Richard Foster, chief actuary at the Department of Health and Human Services, explained: "The error resulted in a substantial underestimate of future interest income[ldots]Actual earnings on [hospital insurance] assets were not affected, only our estimates of future interest.

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