Legal Definitions - in spe

In spe is a Latin legal phrase that translates to "in hope." It describes a situation where an individual has an expectation or a potential right, status, or inheritance that has not yet materialized or become legally certain. It signifies a future possibility rather than a present, vested entitlement. Historically, this term was used to describe someone's status as a potential beneficiary or heir before the event that would make their claim definite, such as the death of a property owner.

Here are some examples to illustrate the concept of "in spe":

• Example 1: A Potential Heir
  Imagine a wealthy individual, Mr. Henderson, who has written a will naming his niece, Sarah, as the primary beneficiary of his estate. While Mr. Henderson is still alive, Sarah is considered an heir in spe. She has the hope of inheriting her uncle's estate, but her right to it is not yet legally established. Mr. Henderson could change his will, or Sarah might not outlive him. Her inheritance is contingent on future events, primarily Mr. Henderson's death and the will remaining unchanged.

• Example 2: A Future Interest in Property
  Consider a property arrangement where a mother grants her son a "remainder interest" in her home. This means the son will fully own the house only after his mother, who holds a "life estate," passes away. During his mother's lifetime, the son holds an interest in spe. He has a future right to the property, but he does not own it outright yet. His ownership is in hope of his mother's death, at which point his interest would become vested and absolute.

• Example 3: An Unborn Beneficiary
  Suppose a trust document is created to provide for "all children born to Ms. Chen." At the time the trust is established, Ms. Chen is pregnant. The unborn child is considered a beneficiary in spe. While not yet born and therefore not a legal person with vested rights, the trust anticipates their existence and provides for them in hope of their birth. Their right to the trust funds is contingent upon being born alive.