Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 846 views

    Nature of Contingent Interest

    Uploaded by

    Pushkar Anand Rathore
    A contingent interest is a transferable property interest that is not guaranteed to vest. It depends on an uncertain future event. If the event occurs, the interest vests in the transferee. However, a contingent interest cannot be forcibly sold. It also does not pass to heirs if the holder dies before the interest vests. A transfer contingent on reaching a certain age, such as 18, creates only a contingent interest until that age is reached. The interest becomes vested once the contingent event occurs or becomes impossible.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    Nature of Contingent Interest

    Uploaded by

    Pushkar Anand Rathore
    846 views2 pages
    A contingent interest is a transferable property interest that is not guaranteed to vest. It depends on an uncertain future event. If the event occurs, the interest vests in the transferee. However, a contingent interest cannot be forcibly sold. It also does not pass to heirs if the holder dies before the interest vests. A transfer contingent on reaching a certain age, such as 18, creates only a contingent interest until that age is reached. The interest becomes vested once the contingent event occurs or becomes impossible.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    A contingent interest is a transferable property interest that is not guaranteed to vest. It depends on an uncertain future event. If the event occurs, the interest vests in the transferee. However, a contingent interest cannot be forcibly sold. It also does not pass to heirs if the holder dies before the interest vests. A transfer contingent on reaching a certain age, such as 18, creates only a contingent interest until that age is reached. The interest becomes vested once the contingent event occurs or becomes impossible.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    846 views2 pages

    Nature of Contingent Interest

    Uploaded by

    Pushkar Anand Rathore
    A contingent interest is a transferable property interest that is not guaranteed to vest. It depends on an uncertain future event. If the event occurs, the interest vests in the transferee. However, a contingent interest cannot be forcibly sold. It also does not pass to heirs if the holder dies before the interest vests. A transfer contingent on reaching a certain age, such as 18, creates only a contingent interest until that age is reached. The interest becomes vested once the contingent event occurs or becomes impossible.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Nature of Contingent Interest Contingent Interest is a transferable interest--- A contingent interest, not being a mere possibility is a well recognized

    form of property which is capable of being transferred. Such a transfer would effectually pass to the transferee, all the interest which the transferor possessed when the contingency happened and the interest vested in possession. But though a contingent interest can be made the subject of a valid transfer inter vivos it cannot be made the subject of a forced sale in attachment proceedings1 [vide Section 60, sub-section (1), clause (m), Code of Civil Procedure]. It has been held that a contingent interest is not an existing right and may never ripen to existing right and is not a sufficient ground to an action for declaration of a right.2 Not Heritable- A contingent interest is not a heritable interest. On the death of a person having contingent interest, his legal heirs do not get anything, not even the contingent interest. After the death of such person it is only his vested interest which can be inherited. In Rajesh Kanta Roy v. Smt. Shanti Devi,3 the Supreme Court observed: In the case of a contingent interest, one of the features is that if a person dies before the contingency disappears and before the vesting occurs, the heirs of such person do not get the benefit of the gift (transfer). Death not an uncertain event, but survival at death of another is.- The death of a person is not an uncertain event , but is a certain one. An interest created to take effect on the death of another person is, therefore, not a contingent one, but is a vested interest. The survival or being alive of a person at the death of another is, on the other hand, an uncertain event and consequently a transfer to a person if he survives or is alive at the death of another creates only a contingent interest. Transfers to person at particular age. - A transfer to a person to take effect upon his attaining a particular age gives him only a contingent interest till he attains that age. The question is to be decided having regard to the intention of transferor as expressed by the words used by him and by other circumstances. A certain sum of money is transferred to A in case he shall attain the age of 18 or when he shall attain the age of 18. Held, in both the cases contingent interest was given. It is ordinarily a contingent interest given when a transfer is at a given age or upon attaining or as the transferee shall attain or after his attaining certain age, is made. In England, it has been held that a gift to such a class of persons as shall attain a particular age, is only a contingent gift. In Festings case,4 where a gift was made to A for life, and then to such of her children as shall attain the age of 21 years, it was held that the gift to the children created only a contingent interest. In Ma Yaits case,5 where under a settlement of an interest was created in favour of all the children of the settler to take effect after the youngest child attained the age of 20,

    1 2

    Fernando v. Gunatiloaka, 1921 P.C 138. S.C. Deb v. B.K. Deb, 35 Cal. 777. 3 A.I.R 1957 S.C. 255 4 Festing v. Allen, (1843) 152 E.R. 1204. 5 Ma Yait v. Official Assistance, 1930 P.C. 17.

    it was held by the Privy Council that until youngest child attained the age of children had only a contingent interest in the property. Contingent interest when becomes vested.-An interest contingent on the happening of a specified event becomes vested on the happening of that event. If the contingency becomes impossible, the interest never comes into effect. An interest, to take effect if a specified uncertain event shall not happen, will become vested when the happening of the event becomes impossible.

    You might also like