An interest-in-possession trust ensures that the income generated by the trust's assets goes to a specific beneficiary or beneficiaries for a fixed period or until the life tenants' death. Subsequently, the capital passes to the remainderman.
A life estate is an interest in property that lasts for the duration of a person's life, providing certain rights and responsibilities for the life tenant.
Remainder interest refers to the future interest in an estate that becomes possessory when a preceding life estate or similar limited estate terminates. The holder of this interest is called the remainderman.
A remainderman is the beneficiary entitled to the remainder or residue of an estate once expenses, specific legacies, and inheritance taxes have been satisfied. This term often comes into play in the context of trusts and will estates, designating who receives property after the preceding estate benefits or interest.
