Vest

verb

/vɛst/

In a Nutshell

To give someone an immediate, fixed right to property, even if possession or enjoyment is delayed.

PLAIN ENGLISH

When property rights "vest," you get a guaranteed right to it even if you can't have it yet. Like a trust saying you get the money at age 25—your right vests immediately, but possession vests (you actually get it) at 25.

⏱ When you'll encounter this term

  • Trust provisions with delayed distributions
  • Retirement account and pension benefits
  • Future interests in property
  • Estate planning for contingent beneficiaries
EXAMPLE

"Dad's trust gives me the house when I turn 30. My interest vested when Dad died—I have a guaranteed right to it. But possession doesn't vest until I'm 30. If I die before 30, my estate gets it because my vested interest passes to my heirs."

⚖️ Compare: Vested Interest vs Contingent Interest

Vested Interest

Fixed and certain. Cannot be taken away. May transfer to heirs. Guaranteed right.

Contingent Interest

Depends on condition. Can disappear. May not transfer. Uncertain right.

💡 Did you know?

You can have a vested interest in property you can't touch for years. If a trust says you get $100,000 at age 40 with no other conditions, your interest is vested now—you have a guaranteed right to it. But if it says you get it "if you graduate college," that's contingent, not vested.