Legal Definitions - windfall

A windfall refers to an unexpected and often significant gain or benefit, typically financial, that the recipient did not actively work for or anticipate.

Here are some examples illustrating the concept of a windfall:

• Scenario: A person receives a substantial inheritance from a distant relative they had never met and were unaware of.

  Explanation: This is a windfall because the inheritance is an unanticipated financial benefit that the recipient did not earn or cause through their own efforts or prior relationship.

• Scenario: While cleaning out an old, inherited attic, a homeowner discovers a forgotten painting that is later authenticated as a valuable work by a renowned artist.

  Explanation: The discovery of the valuable painting constitutes a windfall. It's an unexpected and significant asset that the homeowner did not actively seek out or create, but rather stumbled upon by chance.

• Scenario: A small town experiences a sudden economic boom due to the discovery of a new natural resource nearby, causing the value of existing residential properties to double overnight, even for owners who had no plans to sell.

  Explanation: The dramatic increase in property value is a windfall for the homeowners. It's an unanticipated financial gain resulting from external economic factors, not from any direct action or investment made by the property owners to specifically increase their homes' market value.