Which of the following best describes a term interest?

A term interest refers to a present interest in either income generated from property or the right to use that property for a specific period of time. This definition captures the essence of what a term interest entails—it grants the holder the immediate right to benefit from the property, whether that be through income, usage, or enjoyment.

The focus on "present" interest is critical as it differentiates term interests from future interests, which do not confer immediate rights. For instance, in the context of real property, a person with a term interest would enjoy benefits like rental income or the ability to occupy the property, which aligns with the characteristics described in the correct answer.

In contrast, future interests or vested interests, as mentioned in other options, pertain to rights that will come into effect at a later date, whereas a term interest is inherently based in the current moment. Thus, the understanding of term interests is fundamental in tax law and property rights, where knowing the distinctions between current and future rights is essential for proper asset management and tax planning.