The concept of a vested interest is extremely important--if an interest is not vested, a filer need not report it and will not have a financial interest under the conflict statute. For example, merely being named as an heir in a will by someone who is still living does not create a financial interest in the estate, because the will can be changed. Similarly, persons do not have a vested beneficial interest in a trust when their legal right is conditioned on some uncertain future event. A person has a vested interest in a trust or estate if he has a present legal right to its property or income (including the authority to dispose of the property or income), even if that right is defeasible (subject to being revoked or voided). Uncertainty as to when property will be received does not establish that it is non-vested. Rather, uncertainty as to whether the person is presently entitled to the property indicates that it is non-vested.
- Browse Related Terms: Annual Post-Employment Certification and Notification, Category of Amount, Excepted Trust, FDM, Flags, Relative, SF 278 of Record, trust, Vested Interest