Transfer of Property Act Section 21 — Contingent interest
CHAPTER I PRELIMINARY
General
Summary
A person gets a contingent interest in property when the transfer says they will receive it only if a specific uncertain event happens, or only if a specific uncertain event does not happen. This interest becomes a full, vested interest once the event actually happens, or once it becomes impossible for the event to happen. However, if the transfer gives the person the income from the property before they reach a certain age, or directs that income to be used for their benefit, then the interest is not considered contingent.
Official Text
Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the happening of the event becomes impossible. Exception.—Where, under a transfer of property, a person becomes entitled to an interest therein upon attaining a particular age, and the transferor also gives to him absolutely the income to arise from such interest before he reaches that age, or directs the income or so much thereof as may be necessary to be applied for his benefit, such interest is not contingent.