Springing executory interest is a future interest in a third-party transferee that divests the grantor’s interests at a future time. It transfers the rights in property from a grantor to the third-party transferee when a specific event occurs. It is often used to ensure that the property is used for a specific purpose or that the third-party transferee only has the ownership when the conditions that the grantor intends to happen are met.
Springing interest is an interest in property where the person owns the property after something occurs or at a specified time. Springing interests often appear in wills and estates where a person inherits property only after something occurs. For example, Monica could will her apartment to Chandler for life and then to Rachel. Rachel would have a springing interest because she will own the property only after Chandler passes.
Statutory share (also called forced, elective, or spousal share) refers to the amount state laws entitle a spouse or other person to regardless of what is in a will. Usually, statutory share will refer to the amount a person will be able to receive when their spouse passes.
Stepped-up basis refers to a tax policy that looks at the market value of assets at the time a person inherits them instead of the value when the prior owner purchased the assets. For tax purposes, assets that are sold will be taxed for capital gains, and the more the asset value increases, the greater the capital gains taxes will be. Stepped-up basis can greatly reduce the capital gains taxes owed by someone inheriting property or other assets.
A storage lien is a security interest that may be acquired in property by someone who provides storage services for that property. The failure to pay for services as agreed may allow the lien holder to keep possession of the property involved.
Also called subject to partial divestment, subject to open is when an estate is given to a certain class of individuals (e.g.
Subject to partial divestment, also called subject to open, refers to a class gift in which at least one member of the class is ascertained and has met any con
A sublease is a lease by the lessee of an estate to a third person, conveying all or part of the estate for a shorter term than that for which the lessee holds originally. A sublease is a new contract between the lessee and the sublessee. The original lessee turns into a sublessor in this new contract. There is no privity of contract under the sublease between the owner of the property and the sublessee.
