FUTURE INTEREST
A claim on property, real or personal, that will
begin at some point in the future. A future interest
allows the grantor to retain the right to use that
property until the specified transfer date. Future
interest agreements are often used by donors for
tax purposes. For example, a person may grant a
future interest in his or her home to a charity, with
the stipulation that he will retain use of the home
for the remainder of his life, also called a “life
estate.” Although the charity will not receive the
property until the donor’s death, the donor can
claim a tax deduction the same year the future
interest is granted. Also called future estate.
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