Alternative remainder is a form of future interest in property that is contingent upon the non-occurrence of another disposition. It is granted to a third party who is intended to take possession after the natural termination of the preceding estate. For instance, if a grant is made “to A for life, and then to B,” B’s future interest is considered a remainder. If there is only one preceding estate and the remainder becomes effective upon the expiration of that estate, it is also referred to as an executed estate.
An alternative remainder is a type of future interest in real property that only comes into effect if another disposition fails to take effect. It is a form of remainder, which is a future interest that arises in a third party who is intended to take ownership after the natural termination of the preceding estate. For instance, if a grant is made “to A for life, and then to B or C,” B and C have alternative remainders. If A passes away and B is still alive, B will inherit the property. However, if B dies before A, C will inherit the property instead. The disposition of the property is contingent upon which of the two alternatives occurs. Another example is “to A for life, and then to B, but if B dies before A, then to C.” In this case, B and C have alternative remainders. If B dies before A, C will inherit the property. However, if B outlives A, B will inherit the property. Alternative remainders are beneficial when the grantor wishes to account for multiple possible outcomes. They provide flexibility in the disposition of property and can help prevent disputes over inheritance.
An alternative remainder refers to a provision in a will or trust that designates multiple individuals or entities as potential beneficiaries in case the primary beneficiary is unable to receive the assets or property.
While both alternative and contingent remainders involve designating alternative beneficiaries, the key difference lies in the timing. A contingent remainder only takes effect if a specific condition is met, such as the death of the primary beneficiary, whereas an alternative remainder is triggered by the inability of the primary beneficiary to receive the assets.
Yes, you can typically modify the alternative remainder beneficiaries in your will or trust through a legal process known as an amendment. It is advisable to consult with an attorney to ensure the changes are properly executed and comply with applicable laws.
If none of the alternative remainder beneficiaries are able to receive the assets, the will or trust may include a provision for the assets to be distributed according to a residuary clause, which designates how any remaining property should be distributed.
Yes, you can designate both individuals and organisations, such as charities or non-profit organisations, as alternative remainder beneficiaries in your will or trust.
Yes, you can designate multiple alternative remainder beneficiaries in a specific order of preference. If the first named beneficiary is unable to receive the assets, the second named beneficiary will be entitled to them, and so on.
Yes, you can include specific conditions for the alternative remainder beneficiaries to meet in order to receive the assets. These conditions can be outlined in the will or trust document and should be legally enforceable.
No, you cannot name yourself as the alternative remainder beneficiary. The alternative remainder beneficiaries are designated to receive the assets in case the primary beneficiary is unable to do so.
Yes, you can designate alternative remainder beneficiaries for specific assets or property in your will or trust. This allows you to tailor the distribution of your assets based on your preferences and the circumstances of each beneficiary.
No, alternative remainder beneficiaries do not have any rights or control over the assets during the primary beneficiary’s lifetime. Their entitlement to the assets only arises if the primary beneficiary is unable to receive them.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/alternative-remainder/
- Modern Language Association (MLA):Alternative Remainder. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/alternative-remainder/.
- Chicago Manual of Style (CMS):Alternative Remainder. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/alternative-remainder/ (accessed: May 09 2024).
- American Psychological Association (APA):Alternative Remainder. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/alternative-remainder/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts