Posted in Finance, Accounting and Economics Terms, Total Reads: 374
Abeyance refers to the situation when there is an unknown or non-existent ownership of a property or title or fund.
In abeyance there is no clear owner of a property or title or fund. But there may be stipulation that true owner will take charge of it in the future after fulfilling some criteria. In some cases, owner does not exist. So until the owner comes into existent and becomes eligible to take charge of the asset, that asset is said to be in abeyance.
• When parents set aside some fund for their children for the purpose of higher studies but stipulates that it will not be provided to them until they reach the age of 18, that fund is said to be in abeyance until it reaches to the children at the age of 18.
• If someone dies accidentally without creating a will, then there will not be any clear owner of his his/her house. So until the owners of the properties are identified, those properties are said to be in abeyance.