Types of interest given under a will-executorship laws, Financial Accounting

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Types of interest given under a will

The interest given in a legacy, devise or gift of residue may be of the following kinds:-

1. Vested: A vested interest gives an immediate indefeasible title although possession might be deferred. An illustration is the interest of a remainderman while the life tenant is still alive.

2. Contingent: A contingent interest is dependent on the happening of some specific event. An example is the interest of the second life tenant of a trust while the first is still alive.

3. Absolute: An absolute interest gives full power over property including the power to dispose.

4. Limited: A limited interest gives only the power of enjoyment for a limited period of time.

5. Conditional: A conditional interest is dependent on the beneficiary fulfilling some condition before his title is made absolute.


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