Define: Defeasible Remainder

A defeasible remainder is a type of future interest in property that is subject to a condition or event that could potentially terminate the interest.

There are three main types of defeasible remainders: fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation.

A fee simple determinable defeasible remainder is created when a grantor conveys property to a grantee, but with a condition that automatically terminates the grantee’s interest if a specified event occurs.

In this type of defeasible remainder, the grantor conveys property to the grantee, but with a condition that gives the grantor the right to terminate the grantee’s interest if a specified event occurs. However, the grantor must take affirmative action to terminate the interest.

This type of defeasible remainder is created when a grantor conveys property to a grantee, but with a condition that automatically terminates the grantee’s interest and transfers it to a third party if a specified event occurs.

Yes, a defeasible remainder can be created in any type of property, including real estate, personal property, and intellectual property.

If the condition or event specified in a defeasible remainder does not occur, the grantee’s interest continues and remains unaffected.

Yes, a defeasible remainder can be transferred or inherited like any other property interest, subject to any conditions or limitations specified in the original conveyance.

In some cases, a defeasible remainder can be modified or terminated by agreement between the parties involved. However, this would depend on the specific terms and conditions set forth in the original conveyance.

If there is ambiguity or uncertainty regarding a defeasible remainder, courts will typically interpret the language of the conveyance and consider the intent of the parties involved to determine the outcome.