The form of legal title by which an asset is held. Fiduciaries generally should vest their fiduciary capacity in themselves expressly so as to hold it completely separate from any other person or group’s interests, and yet still have access for management purposes at all times if necessary.
Vesting is an unconditional entitlement to an asset.
When a property’s legal ownership rights and interests are transferred to a new owner, such an event is known as vesting in the law. The process of vesting establishes a legally protected right to use the property in the future. It is possible to have a vested right to a property, even if you don’t yet own the property. A vested interest exists when a legal estate’s existing or future possession can be transferred to another person.« Back to Glossary Index