Transfer of Property Act Section 19 — Vested interest
CHAPTER I PRELIMINARY
General
Summary
An interest in property is considered "vested" if the transfer does not specify when it will take effect, says it takes effect immediately, or says it will take effect when an event that is certain to happen occurs—unless the transfer itself shows a different intention. A vested interest remains valid even if the person entitled to it dies before actually getting possession of the property. The fact that enjoyment of the property is delayed, someone else gets a prior interest in it, income is accumulated until a later time, or the property would pass to another person if a particular event happens does not, by itself, mean the interest is not vested.
Official Text
Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer. A vested interest is not defeated by the death of the transferee before he obtains possession.
Explanation.—An intention that an interest shall not be vested is not to be inferred merely-from a provision whereby the enjoyment thereof is postponed, or whereby a prior interest in the same property is given or reserved to some other person, or whereby income arising from the property is 1. Subs. by Act 20 of 1929, s. 9, for “as regards the whole class”. 2. Subs. by s. 10, ibid., for s. 16, 17 and 18. directed to be accumulated until the time of enjoyment arrives, or from a provision that if a particular event shall happen the interest shall pass to another person.