Forfeiture

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Forfeiture

The loss of rights to an asset outlined in a legal contract if a party fails to fulfill obligations of the contract.

Forfeiture

The loss of a right or property. Forfeiture usually occurs when one has neglected to fulfill one's obligations necessary to keep the right or property. For example, one may forfeit one's house if the mortgage defaults.

forfeiture

The loss of rights to something as a result of a failure to perform an obligation.Courts often view forfeitures as penalties,which are illegal.As a result,one who is buying property under a bond for title and will receive a deed only when all payments have been made may be protected from a forfeiture if there is a default after a substantial amount of money has already been paid.

References in periodicals archive ?
190) See supra notes 81, 221-224 and accompanying text (describing the perverse incentives set up under the forfeiture system, which allows police and prosecutors to retain seized funds and property); see also Blumenson & /Nilsen, supra note 33, at 69 ("One Department of Justice manual governing racketeering prosecutions, for example, suggests that prosecution may be contingent on the presence of forfeitable assets, rather than forfeiture being an incident of prosecution.
230) Further, such a rule may be easier for the Service to administer assuming that valuation is easier when the property becomes transferable or no forfeitable.
It has been argued that payments under a deferred compensation contract have no estate tax value if they were forfeitable to the executive during his lifetime.
Rights that are conditioned upon the sufficiency of plan assets in the event of plan termination or partial termination are considered to be forfeitable.
For example, legitimate funds used to disguise illegitimate funds are forfeitable as property "involved in" a money laundering offense.
Extent to which Must meet ERISA The ERISA vesting benefits may be vesting rules apply only if forfeitable requirements.
In other words, an employee will not be subject to tax on restricted property as long as his rights to that property are forfeitable (subject to a substantial risk of forfeiture) and not transferable by him free of such risk.
Normally, a cash method taxpayer does not have to report an item of income if it is restricted or forfeitable.
attributes of being waivable, forfeitable, and consentable, and a court