A remainder estate is a future interest in property that is given to someone other than the person who originally owned the property or their heirs. This occurs after the original owner’s estate ends. For example, if a grant is given to person A for their lifetime and then to person B, person B’s future interest is considered a remainder. There are various types of remainders, including vested and contingent remainders, cross-remainders, and charitable remainders. A vested remainder is given to a specific person and is not dependent on any conditions, while a contingent remainder is dependent on certain conditions or is owned by individuals who cannot be identified.
An estate in remainder refers to a future interest in a third party who is not the creator of the estate, its initial holder, or their heirs. This individual is intended to inherit the property after the previous estate comes to an end. For instance, if a grant states “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 is granted upon its expiration, it is also known as an executed estate. Examples of remainders include “to A for life, and then to B” where B’s future interest is a remainder, “to A for life, and then to A’s children” where A’s children have a contingent remainder dependent on surviving A, and “to A for life, and then to B if B graduates from college before A dies” where B’s interest is a contingent remainder contingent upon graduating from college before A’s death. These examples demonstrate how a remainder is a future interest in a property that arises in a third party after the natural termination of the preceding estate. The type of remainder (vested, contingent, defeasible, etc.) depends on the language used in the grant and any conditions or contingencies attached to the interest.
An estate in remainder refers to a future interest in a property that will take effect after the termination of a prior estate. It is a type of ownership interest that becomes effective upon the occurrence of a specified event or condition.
A life estate grants an individual the right to possess and use a property for the duration of their life, while an estate in remainder grants a future interest in the property that will only take effect after the termination of the life estate.
An estate in remainder is typically held by a third party, known as the remainderman, who will inherit the property upon the termination of the prior estate.
If the remainderman dies before the termination of the prior estate, their interest in the property will pass to their heirs or beneficiaries according to their will or the laws of intestate succession.
Yes, an estate in remainder can be sold or transferred to another party. However, the new owner will only have a future interest in the property and will need to wait for the termination of the prior estate to take possession.
Yes, the owner of a life estate can sell their interest in the property. However, the buyer will only acquire the rights to possess and use the property until the original life estate holder passes away.
If the life estate holder decides to sell the property, the buyer will acquire the rights to possess and use the property until the original life estate holder passes away. After the termination of the life estate, the remainderman will then take possession of the property.
In general, the remainderman does not have the authority to challenge the actions of the life estate holder unless they are in violation of the terms of the life estate agreement or are causing harm to the property.
Yes, the life estate holder can mortgage the property. However, any mortgage or lien placed on the property will need to be satisfied before the remainderman can take possession of the property upon the termination of the life estate.
No, the life estate holder cannot be evicted from the property as long as they are abiding by the terms of the life estate agreement. They have the right to possess and use the property until their death or the agreed-upon termination of the life estate.
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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