Define: Fortuitous Vesting

Fortuitous vesting refers to the acquisition of rights or ownership that occurs unexpectedly or by chance, rather than through deliberate action or intention. It often arises in legal contexts where unforeseen circumstances lead to the vesting of certain rights or interests in property or assets. This could include situations such as the expiration of a time limit or the occurrence of an unforeseen event specified in a contract or legal document. Fortuitous vesting implies that the acquisition of rights or ownership is not a result of deliberate planning but rather a consequence of incidental or accidental circumstances.

To create a trust, it is necessary that the trust property comes into the hands of the trustees. Typically this is not a problem since the settlor will perform to satisfaction the steps needed to effect the transfer. Sometimes, though, either the settlor fails to do what is required of him or the steps he does take for some reason fall short. Equity does not, on the whole, seem to care very much how the legal title comes into the hands of the trustees, just so long as it does. This means that a trust which is improperly constituted may later be rescued if the trust property, by coincidence, happens to fall to the trustees. This may happen if, for example, the trustee is appointed to administer the estate of the settlor, or else if the rule in Strong v Bird (1874) is determined to apply.

See also: Imperfect Gift, Constitution Of Trusts, Strong v Bird (1874).

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This glossary post was last updated: 29th March, 2024.