Non-reversionary
Non-reversionary refers to a type of agreement, policy, or legal condition in which the original owner does not retain any right to reclaim or revert to the original state or benefits after a certain event or period. This term is often used in contexts involving insurance, property law, and financial agreements, indicating that once rights or benefits are relinquished, they are permanently transferred or unclaimed.
Non-reversionary meaning with examples
- In non-reversionary insurance policies, once the benefits are paid out, the original policyholder cannot claim any further entitlements or adjustments, ensuring that the insurer retains full discretion over future dealings.
- The non-reversionary nature of the trust fund means that once assets are distributed to beneficiaries, the grantor has no claim or rights to those assets, ensuring that the beneficiaries’ rights are protected and secure.
- For non-reversionary leases, tenants are provided with full rights for the duration of the lease term, and upon expiration, the property does not revert to the previous owner but is handled per the leasing terms.
- Investors should consider non-reversionary options when looking to diversify their portfolios, particularly in funds that do not allow for withdrawal or reallocation after investments are made.
- Understanding the implications of a non-reversionary clause in a will is crucial for heirs, as it clarifies that once assets are distributed, the decedent's intentions prevent any future claims from arising.
