Contingent interest - sustany/dvg GitHub Wiki

A contingent interest is defined as an interest that the holder may enjoy only upon the occurrence of a�condition precedent.

For example, say Bill writes in his�will�that he leaves his "interest in The Centerville Caf� to Sarah, if she is still living in Centerville." This�conveyance�promises Sarah ownership over The Centerville Caf� only if she is living in Centerville at the time which Bill dies. If she is not, she stands to lose her interest. Therefore, Sarah holds a contingent interest in The Centerville Caf�.

For comparison, another type of �interest� is a�future interest. A future interest�is contingent when the person to whom it is conveyed is unknown or the event upon which it is limited is uncertain. If the�condition�upon which a future interest depends is precedent (meaning comes before), the interest is contingent; if the condition is subsequent (meaning comes afterward), the interest is�vested, subject to�defeasance.

See e.g., Kamens v. Utica Mutual Insurance Company 776 N.Y.S.2d 671 (2004).

Related terms: condition subsequent; contingency; contingent ownership; estate planning; estates and trusts; real property