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vested interest

A Dictionary of Business and Management | 2006 | © A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information) Copyright

vested interest
1. In law, an interest in property that is certain to come about rather than one dependent upon some event that may not happen. For example, a gift to ‘A for life and then to B’ means that A's interest is vested in possession, because A has the property now. B's gift is also vested (but not in possession) because A will certainly die sometime and then B (or B's estate if B is dead) will inherit the property. A gift to C ‘if C reaches the age of 30’ is not vested, because C may die before reaching that age. An interest that is not vested is known as a contingent interest.

2. An involvement in the outcome of some business, scheme, transaction, etc., usually in anticipation of a personal gain.

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