Springing Interest Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Springing Interest, written in plain English, along with examples of how it is used.
What is Springing Interest?
(n) Springing interest is the expected right in a property which may arise on the occurrence of a specified future event. For example a deed of trust transferring a property to Mr. Rex in the event he marries Anna
History and Meaning of Springing Interest
Springing interest is a legal term that refers to the right to a property that may arise in the future based on the occurrence of a specified future event. This type of interest is often found in deeds, trusts, and other legal documents where a property owner wants to transfer their property rights to someone else but only under certain circumstances.
A springing interest can be created in a number of ways, such as through a will, trust agreement or deed. The future event that triggers the interest could be something like a marriage, the birth of a child, or the completion of certain conditions. Once the specified event occurs, the springing interest then "springs" into effect and the beneficiary obtains the property rights.
Examples of Springing Interest
A father sets up a trust fund for his children that will only be released to them when they turn 25 years old.
A couple purchases a house together, with a stipulation in the deed that if they get married within five years, one of them will automatically become the sole owner of the property.
A charity receives a donation of a piece of land with the condition that they can only sell it once the adjoining property is also sold.
Legal Terms Similar to Springing Interest
Contingent Interest - A legal term that refers to a future interest in property that is dependent on certain conditions. It is similar to springing interest in that it only takes effect if certain events occur.
Remainder Interest - A future interest in property that becomes effective after the termination of an earlier specific interest in the same property.
Reversionary Interest - A future interest in property that arises when a property owner transfers property to someone else but retains the right to take it back if certain conditions occur.