Define: Executory Remainder

An executory remainder is a future interest in a property that will take effect upon the occurrence of a specific event or condition, such as the death of a certain individual or the expiration of a lease.

Unlike a vested remainder, which is a future interest that is certain to become possessory in the future, an executory remainder is not certain to become possessory and is subject to the occurrence of a specific event or condition.

The executory remainder interest is typically held by a third party, known as the remainderman, who will become the owner of the property upon the happening of the specified event or condition.

Yes, an executory remainder can be created in any type of property, including real estate, personal property, or even intellectual property, as long as the necessary legal requirements are met.

Yes, an executory remainder can be transferred or sold by the remainderman, just like any other property interest. However, the transfer or sale is subject to any restrictions or conditions imposed by the original grantor.

If the specified event or condition necessary for the executory remainder to take effect does not occur, the remainder interest will fail and the property will revert back to the original grantor or their heirs.

In general, an executory remainder cannot be revoked or terminated by the original grantor once it has been created, unless there are specific provisions allowing for such revocation or termination in the original grant or by subsequent agreement.

Yes, an executory remainder can be subject to taxation, depending on the applicable tax laws and regulations in the jurisdiction where the property is located. It is advisable to consult with a tax professional for specific guidance.

Yes, an executory remainder can be created in a will, allowing the testator to specify the conditions or events upon which the remainder interest will take effect.

In general, an executory remainder cannot be modified or amended once it has been created, unless there are specific provisions allowing for such modifications or amendments in the original grant or by subsequent agreement. However, it is important to consult with an attorney to understand the specific legal requirements and limitations in your jurisdiction.