A cross-remainder is a future interest in land that occurs when different individuals are granted specific estates in different parts of the land, and the remainders of all the estates are made to belong to the survivor or survivors. For instance, if a will states “to A and B for their lifetime, with the remainder to the survivor and her heirs,” then A and B possess cross-remainders. If no tenants or descendants survive, the remainder is transferred to a third party. Each tenant in common has a reciprocal or cross remainder in the portion owned by the others. This type of remainder cannot be created by a deed unless explicitly stated, but it can be implied in a will.
Cross-remainder refers to a future interest that arises when specific estates are granted to two or more individuals either in separate portions of land or in undivided shares of the same land. In this arrangement, the remainders of all the estates are made to vest in the survivor or survivors. Each tenant in common holds a reciprocal or cross remainder in the share of the others. If no tenants or descendants survive, the remainder is vested in a third party, also known as the ulterior remainderman. For instance, Example 1 demonstrates cross-remainder where two individuals, A and B, are granted a life estate, and the remainder is given to the survivor and their heirs. Example 2 illustrates cross-remainder where A is given Blackacre and B is given Whiteacre, and the remainder of A’s estate is given to B in the event of A’s failure of issue, while the remainder of B’s estate is given to A in the event of B’s failure of issue. Cross-remainder is a complex legal concept that involves the vesting of future interests in multiple parties. It is advisable to seek guidance from a legal professional to fully comprehend the implications of cross-remainder in a specific situation.
A cross-remainder is a legal term used in estate planning to refer to a type of remainder interest in property that is created when two or more parties are entitled to receive the property upon the termination of a prior interest.
A regular remainder interest is created for a specific individual or group of individuals, while a cross-remainder is created for multiple parties who are not necessarily related or identified at the time the interest is created.
Yes, a cross-remainder can be created in a will or trust as part of the estate planning process.
If one of the parties with a cross-remainder interest dies before the prior interest terminates, their share of the property will typically pass to their heirs or beneficiaries according to the terms of the will or trust.
In most cases, a cross-remainder can be modified or revoked by the creator of the will or trust, as long as they have the legal capacity to do so.
There may be tax implications associated with a cross-remainder, so it is important to consult with a tax professional or estate planning attorney to understand the potential tax consequences.
If the property subject to a cross-remainder is sold or otherwise disposed of, the parties with the cross-remainder interest will typically be entitled to receive their share of the proceeds or replacement property, as specified in the terms of the will or trust.
A cross-remainder can be contested in court if there is a dispute over its validity or interpretation, so it is important to seek legal advice if you have concerns about a cross-remainder.
To ensure that your wishes regarding a cross-remainder are carried out, it is important to work with an experienced estate planning attorney to create a clear and legally enforceable will or trust document.
If you have questions or concerns about a cross-remainder in a will or trust, it is important to seek legal advice from an attorney who specializes in estate planning and probate law.
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.
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