Vested Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Vested, written in plain English, along with examples of how it is used.
What is Vested?
(adj). Vested means confirmed. When a property, right or title is confirmed an any person by an act, order , succession or by any proceedings of the law, he is said to hold a vested right in the property, asset or right
History and Meaning of Vested
The term "vested" comes from the Latin word "vestire" which means "to clothe" or "to endow with a possession or estate." In legal terms, a vested right is a legal right that is guaranteed and can't be taken away without due process of law. This means that a vested right is protected by law, and cannot be modified or revoked arbitrarily.
In property law, a vested right refers to the ownership interest in a property or asset and the right to use or benefit from it. In other words, a vested right is a property right or interest that has been established by law or agreement and is protected by law.
Examples of Vested
- After working for five years at the company, John's 401(k) contributions have vested, which means he now has a guaranteed right to those funds.
- Sally's grandfather left her a trust fund which she will inherit when she turns 25, but until then, the money is vested and cannot be accessed by anyone else.
- Under state law, once a tenant has lived in a property for a certain period of time, they may have a vested right to remain in the property, even if the landlord wants to sell or lease to someone else.
Legal Terms Similar to Vested
- Absolute right: A right that is complete and unconditional, and not dependent on any contingency.
- Equitable interest: A legal interest in property that is recognized in equity rather than at law, such as a beneficiary's right to a trust.
- Ownership interest: Refers to the rights of an owner of an asset, including the right to use, transfer, or dispose of the asset.