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§
- 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.”
- 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.
Related Terms§
- 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§
- Investopedia on Remainder
- Legal Information Institute (LII) on Future Interest
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§
Thank you for delving into the essentials of remainder interests in property law. For further enrichment, refer to the suggested readings and take on more quizzes to deepen your understanding!
