Terminable Interest (Noun)
Meaning
An interest in property that terminates under specific conditions.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The will stated that her niece had a terminable interest in the estate, which would end if she got married before the age of 25.
- The trust document specified that the terminable interest in the property would be revoked if the beneficiary failed to make the required annual payments.
- A life estate with a terminable interest means that the property will revert to the original owner or their heirs if the life tenant dies or reaches a certain age.
- The court ruled that the terminable interest in the property was not subject to the same tax laws as a fee simple interest.
- The terminable interest in the timeshare was set to expire after 20 years, at which point the property would revert to the original developer.