Remainder

A remainder is a future interest in an estate that takes effect upon the expiration or termination of a prior estate without reverting back to the original grantor.
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Definition

A remainder is an interest in an estate that becomes possessory when a preceding estate, typically a life estate or an estate for a term of years (leasehold), ends. It is distinct from a reversion, which returns to the grantor or their heirs. Remainders can be vested or contingent based on certain conditions.

Types of Remainder

  1. Vested Remainder: An interest given to a known person(s) with no conditions precedent. For example, “to John for life, then to Mary and her heirs.”
  2. Contingent Remainder: Depends on an uncertain event or unknown person. For example, “to John for life, then to Mary if she marries.”

Examples

  • Example 1: In a will, “I leave Blackacre to my sister for her lifetime, and upon her death, the property goes to my nephew.” The nephew holds a remainder.
  • Example 2: “To Jane for life, and then to Jane’s children.” Here, the remainder could be vested if Jane currently has children or contingent if she doesn’t yet.

Frequently Asked Questions

Q1: What distinguishes a remainder from a reversion? A: While both are future interests, a remainder goes to a third party upon the termination of the prior estate, whereas a reversion returns to the grantor or their heirs.

Q2: Can a remainder be sold or transferred? A: Yes, a vested remainder can usually be sold or transferred by the holder, just like other property interests.

  • Life Estate: An estate that lasts for the lifetime of a specified person.
  • Reversion: The return of property to the original grantor or their heirs when a temporary estate expires.
  • Fee Simple: The greatest interest in a parcel of land that one can own, potentially infinite in duration.
  • Leasehold: A user interest in land for a certain term or years (e.g., rental agreements).

Online Resources

Suggested Books

  • Real Estate Law by Robert J. Aalberts and Charles J. Jacobus
  • Understanding Property Law by John G. Sprankling
  • The Law of Future Interests by C. Rufus Bunnell

Fundamentals of Remainder: Property Law Basics Quiz

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Remainder Interest
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