Future interest is a legal concept that affects the rights of different individuals over a piece of property. These interests are things like rights of ownership, rights to use or occupy a property, or rights to receive the income of a property such as rental income.
In essence, a future interest is a right to some sort of benefit from a property but not necessarily the right to own the property today. For example, you might have a right to receive rental income from a property that you don’t currently technically own.
In the realm of real estate investments, future interests can be very valuable since they afford certain investors the right to gain a financial benefit without having to own or pay for the property today. That is, the investor can secure the right to gain the financial benefits of the property for a future date.
However, it should be noted that since future interests are contingent on other rights, if those rights were to change, the future interests may be suddenly terminated or reduced in some way. Therefore, before investing in a future interest it is important to consult with an expert to confirm that the investment is an appropriate solution.
Conclusion
Future interests are an important legal concept to understand, for investors especially. Securing rights to future benefits on a property can be a great way to maximize returns on your investments, but it is essential to know that these rights may be limited in nature and could change with time. Therefore, you should always seek expert advice before committing to a future interest.