Remainderperson

Definition

A Remainderperson is an individual or legal entity that holds an interest in an estate which becomes possessory only after the termination of a prior, present possessory interest. This typically refers to one who possesses a remainder interest, which can be either vested or contingent.

Vested Remainder

A vested remainder is a type of remainder interest where the remainderman (the person holding the remainder interest) is certain to receive the interest in the future, with no conditions that need to be met aside from the natural termination of the preceding estate.

Contingent Remainder

A contingent remainder is one where the remainderman’s interest is dependent on a condition precedent, other than the termination of the preceding estate. If the condition is not met, the interest does not become possessory.

Examples

Example 1: John grants a life estate to Mary, and upon Mary’s death, the property passes to David. Here, David is the remainderperson. His interest in the property becomes possessory only after Mary’s life estate ends.
Example 2: Susan bequeaths her house to her son, Jeff, for life, with the remainder to Jeff’s children. In this case, Jeff’s children are the remainderpersons, and their interest vests only after Jeff’s death.

Frequently Asked Questions

Q1: What is the difference between a vested and a contingent remainder? A1: A vested remainder is guaranteed to become possessory upon the termination of the preceding estate, subject to no conditions. In contrast, a contingent remainder requires a condition to be met before it becomes possessory, in addition to the termination of the current estate.

Q2: Can the interest of a remainderperson be sold or transferred? A2: Yes, the interest of a remainderperson is a property interest that can typically be sold, transferred, or inherited.

Q3: What happens if a condition for a contingent remainder is not met? A3: If the condition specified for a contingent remainder is not met, the remainderperson does not receive the interest.

Q4: Can there be multiple remainderpersons? A4: Yes, there can be multiple remainderpersons who may own the remainder interest concurrently or sequentially based on the estate planning terms.

Life Estate: A type of property interest that lasts for the life of a specified individual.
Fee Simple: The most extensive estate in land, granting absolute ownership.
Executory Interest: An interest in property that will cut short the preceding estate upon the occurrence of a specified event.

Online References

Suggested Books for Further Studies

" Wills, Trusts, and Estates" by Jesse Dukeminier
“Understanding Property Law” by John G. Sprankling
“Real Estate Law (Real Estate Law (Seidel, George))” by Marianne M. Jennings

Fundamentals of Remainderperson: Property Law Basics Quiz

### What is a remainderperson? - [ ] Someone who has a present possessory interest in an estate. - [x] Someone who has an interest in an estate that becomes possessory after the termination of a present possessory interest. - [ ] A person who maintains the remainder of the estate's land. - [ ] An individual who cares for the estate in the absence of the owner. > **Explanation:** A remainderperson is an individual who has an interest that becomes possessory only after the current possessory interest is terminated. ### Which of the following best describes a vested remainder? - [x] An interest that is guaranteed to become possessory upon the termination of a preceding estate. - [ ] An interest that is conditional upon the occurrence of an event other than the termination of the preceding estate. - [ ] An interest held by a trustee. - [ ] An interest that cannot be transferred. > **Explanation:** A vested remainder is certain to become possessory upon the conclusion of the previous estate, with no additional conditions. ### What is a contingent remainder? - [ ] An interest that is certain to become possessory. - [ ] An interest that is always vested. - [ ] An interest that is immediately possessory. - [x] An interest that depends on a condition other than the termination of the preceding estate. > **Explanation:** A contingent remainder requires a condition to be met in addition to the termination of the preceding interest. ### Can a remainder interest be transferred or sold? - [x] Yes. - [ ] No. - [ ] Only in specific states. - [ ] Only with the grantor's consent. > **Explanation:** A remainder interest can typically be sold or transferred as it is a property interest. ### Multiple remainderpersons can exist for the same estate. - [x] True - [ ] False > **Explanation:** Multiple remainderpersons can own the remainder interest concurrently or sequentially based on the terms of the estate. ### What happens to a contingent remainder if the condition is not met? - [ ] The remainder interest vests regardless. - [x] The remainder interest does not become possessory. - [ ] The preceding estate continues indefinitely. - [ ] The property reverts to the granting party. > **Explanation:** If the condition isn't met, the contingent remainder does not become possessory, often resulting in reversion or another interest taking effect. ### Who holds an immediate, possessory interest in an estate? - [x] Life estate holder - [ ] Remainderperson - [ ] Contingent beneficiary - [ ] Trustee > **Explanation:** A life estate holder has an immediate, possessory interest in the estate, whereas the remainderman waits until the life estate terminates. ### In what scenario does a remainder interest become possessory? - [ ] When the property is sold. - [ ] Upon meeting a condition precedent. - [x] After the termination of the preceding estate. - [ ] When the remainderperson requests it. > **Explanation:** A remainder interest becomes possessory after the termination of the preceding estate. ### What type of remainder requires no additional conditions other than the termination of the prior estate to become possessory? - [x] Vested remainder - [ ] Contingent remainder - [ ] Executory interest - [ ] Fee simple > **Explanation:** A vested remainder has no additional conditions other than the natural end of the preceding interest. ### Can a remainderperson be an entity such as a business or organization? - [x] Yes - [ ] No > **Explanation:** A remainderperson can be an individual or an entity like a business or organization, which may hold the remainder interest.

Thank you for exploring the concept of a Remainderperson in property law. Knowledge in this area can be crucial for estate planning and legal clarity in property interests. Continue to engage and excel in your legal studies!