Define: Cross Remainders

Cross remainders refer to a legal concept where multiple parties hold concurrent interests in a property, and upon the death of one party, their interest automatically passes to the surviving co-owners.

While joint tenancy also involves multiple parties holding concurrent interests, cross remainders differ in that they allow for the automatic transfer of the deceased party’s interest to the remaining co-owners, rather than passing it to their heirs or beneficiaries.

Yes, cross remainders can be created in any type of property, including real estate, personal property, or even intellectual property.

Cross remainders are usually created through a legal instrument, such as a will, trust, or deed, which explicitly states the intention to establish cross remainders among the co-owners.

Yes, cross remainders can be modified or terminated if all parties involved agree to the changes and follow the necessary legal procedures.

If one co-owner wishes to sell their interest in the property, they must obtain the consent of the other co-owners. If the other co-owners refuse to give consent, the selling co-owner may need to seek a court order to force a sale or partition of the property.

Yes, cross remainders can be challenged in court if there is evidence of fraud, undue influence, or lack of capacity when the legal instrument establishing the cross remainders was created.

If one of the co-owners dies without a will or trust, the laws of intestacy will determine how their interest in the property is distributed. In such cases, cross remainders may not apply, and the deceased co-owner’s interest may pass to their heirs or beneficiaries.

Yes, cross remainders can be used in business partnerships to ensure the smooth transfer of ownership interests upon the death of a partner. However, it is important to consult with a business attorney to ensure that the cross remainders are properly established and aligned with the partnership agreement.