Froogle | Glossary | 'Remainder'

that part of an estate in land that is left upon the termination of the immediately preceding estate (often a life estate; or an estate for a term of years) and that does not amount to a reversion to the original grantor (or his/her heirs). The remainder must be created by the same conveyance and at the same time [as the preceding estate]. Plus, the remainder must vest during the continuance of the preceding estate. Moreover, no remainder can be created in connection with a fee simple.

CONTINGENT (EXECUTORY] REMAINDER: any remainder subject to a condition precedent, created in favor of: (i) an unborn person; or (ii) an existing-but-unascertained person. Such an interest was not – according to the older common law definition – an estate (instead, it was the possibility of an estate). A contingent remainder becomes a vested remainder only if: (i) any condition precedent is fulfilled; and (ii) the remainderman is identified prior to the termination of the preceding estate.
EXECUTED REMAINDER: a remainder interest that is vested as of the present time, through the enjoyment of it may be withheld until a future date.
VESTED REMAINDER: a remainder created in favor of an existing (and ascertained person) who has the right to immediate possession [at the termination of the preceding estate/estates] – subject only to another person’s prior right to possession.
EXAMPLE:

a grandfather conveys a house to his son for life, then to his oldest grandson. The grandson has a vested remainder in the house since he is entitled to it at the son’s death. If the grandson pre-deceases the son, the house is distributed according to the provisions of the grandson’s will.

user comments