When is a trust considered 'vested'?

A trust is considered 'vested' when a beneficiary has a right to trust property. In legal terms, vesting refers to the point at which a beneficiary's interest in the trust becomes secure and cannot be taken away. This means that the beneficiary's right to the assets of the trust is established, and they have a definite claim to those assets, whether or not they are immediately entitled to receive them.

For example, if a trust document states that at a certain age, a beneficiary will inherit a set sum or property from the trust, that right becomes vested at the time the beneficiary is named and their eligibility is established, even if the distribution does not occur until a later date. This security in their claim differentiates vested interests from contingent ones, where a beneficiary's right to property may depend on future events that might not happen.

The other options do not accurately represent the definition of a vested interest. While having all beneficiaries chosen may provide clarity to the trust, it does not guarantee that their rights are vested. Similarly, funding the trust speaks to the practical aspect of the trust's financial status rather than the legal rights of the beneficiaries. Finally, the signing of the trust document is an administrative matter and does not, in itself, confer the