Vesting
/ˈvɛstɪŋ/
Definitions
- (n.) The process by which a person gains an unconditional legal right, especially to benefits or property, over time.
The employee's pension benefits will begin vesting after five years of service.
- (v.) (Gerund) The act of granting such rights to a person.
Vesting occurs gradually according to the terms of the trust agreement.
Related terms
See also
Commentary
Vesting often involves time-based conditions and is critical in benefits and property law; clarity in defining vesting schedules is essential in contracts and employee benefit plans.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.