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.
Let's suppose the future interests of another person depend on your saying, Yes--when all your own most cherished ideas and opinions urge you to say, No.
BANKING AND CREDIT NEWS-February 19, 2015-More than two thirds of SMEs cite future interest rate rises as reason for concern
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This transaction is consistent with our proactive approach to reducing our balance sheet and future interest expense while maintaining our strong liquidity, funding and capital position.
The IRS disagreed, claiming that the direct payments were gifts of future interest that were subject to the gift tax and ineligible for exclusion.
Potential buyers continued to sit on their hands in the face of house price falls, and uncertainty over the economy and future interest rate rises.
However, in order for the annual exclusion to apply, the gift must be a present interest rather than a future interest in the property.
This procedure is also applied to the future interest rate (1 month and 3 months), and the results are presented in Table 2.
The spike in the ABI this month reflects reinvigorated design activity now that national elections have concluded and future interest rate policy is clearer," said Matthew A.
A RELIEF rally carried Wall Street sharply higher after the Federal Reserve appeared to soften its stance on future interest rate hikes.

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