What is Unearned Income?

Legal Definition
Unearned income refers to income received by virtue of owning property (known as property income), inheritance, pensions and payments received from public welfare. The three major forms of unearned income based on property ownership are rent, received from the ownership of natural resources; interest, received by virtue of owning financial assets; and profit, received from the ownership of capital equipment. As such, unearned income is often categorized as "passive income".

Unearned income can be discussed from either an economic or accounting perspective, but is more commonly used in economics.
-- Wikipedia
Legal Definition
1. Accounting. Income received before a service is provided or a good is sold.2. Taxation. Income from means not arising from a person's efforts.