Multiple choice

Which of the given conditions apply(ies) to create a vested interest?

  1. It is not defeated by the death of the transferee before he obtains possession.

  2. It is transferable and heritable.

  3. It accrues in the present and immediately, even though the enjoyment is postponed.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A vested interest is not defeated by the death of the transferee before he obtains possession. 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 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.

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