Legal background to trusts & estates: absolute interest in property
A person with complete and absolute ownership of an item of property, has both the
- legal interest, and
- beneficial interest.
In legal terms the interest is absolute, vested and in possession. Absolutemeans entitlement to the item of property not limited by any other persons interest.In strictness it covers income and capital. Vested or (indefeasiblyvested) means nothing can happen to take away the persons beneficialentitlement without their say so. In possession means the title is notdependent on something yet to happen.
It entitles the owner to whatever benefit comes from the property. This may be
- the income it produces, or
- the pleasure of using it, or looking at it.