When a Future Interest Is Certain
Not all future interests carry the same weight. Arizona law draws a clear line between vested and contingent interests, and the distinction affects everything from property tax treatment to how courts handle disputes during estate settlement.
A future estate is vested when there is a person in being who would have immediate right to the possession of the lands upon the termination of the intermediate or precedent estate.
A.R.S. § 33-205(A)A vested interest means someone specific is already identified and alive. If a parent holds a life estate and their adult child holds the remainder, that remainder is vested. The child does not need to wait for a condition to be met. They simply need to wait for the life estate to end.
When the Outcome Is Still Uncertain
A future estate is contingent while the person to whom, or the event upon which it is limited to take effect, remains uncertain.
A.R.S. § 33-205(B)A contingent interest depends on something that has not happened yet. If a trust says "the property goes to my first grandchild who graduates from college," that interest is contingent until someone meets the condition. If no grandchild ever qualifies, the interest may never vest at all.
This distinction matters for estate planning because vested interests are generally stronger, more predictable, and easier to transfer. Contingent interests introduce uncertainty that can complicate property sales, refinancing, and family transitions. Working with experienced estate planning counsel helps families structure these interests in a way that achieves their goals while minimizing complications.
