Remainderperson

A Remainderperson is an individual who has an interest in an estate that becomes possessory after the termination of a present possessory interest, often referring to one who holds a remainder interest, whether vested or contingent.
On this page

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

  1. Investopedia: Remainderman Definition
  2. Wikipedia: Remainder (Law)
  3. Legal Information Institute: Remainderman

Suggested Books for Further Studies

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

Fundamentals of Remainderperson: Property Law Basics Quiz

Loading quiz…

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!

Remediation
Remainderman