There are two types of remainders in property law: vested and contingent. A vested remainder is held by a specific person without any conditions precedent; a contingent remainder is one for which the holder has not been identified, or for which a condition precedent must be satisfied.
What is a contingent remainder?
contingent remainder. n. an interest, particularly in real estate property, which will go to a person or entity only upon a certain set of circumstances existing at the time the title-holder dies. Examples of those potential circumstances include surviving one’s brother or still operating the family farm next door.
Can a contingent remainder follow a vested remainder? (In the case of the vested remainder no reversion is necessary since B stands ready to take however A’s estate terminates.) In fact, we may state a rule that contingent remainders are always followed by a vested interest, a reversion being implied if no other vested interest is stated.
What is a vested remainder in real estate?
n. the absolute right to receive title after a presently existing interest in real property terminates. A “vested remainder” is created by deed or by a decree of distribution of an estate given by will.
Can you transfer a contingent remainder?
Although it was held that a contingent remainder could not be transferred inter vivos, nevertheless, if the contingent remainder- man attempted to alienate and the remainder subsequently vested in his lifetime, the remainder under certain circumstances passed by way of estoppel to the alienee.
What is a fee simple remainder?
Estate in remainder A form of estate in fee simple whereby the proprietor takes possession only on the termination of a life estate.
What is the risk for anyone purchasing a life estate from the life tenant?
However, there is a potential legal disadvantage as well: the life tenant may become involved in any legal problems that a remainderman incurs. For example, if a parent and a child have created a life estate and the child is sued for nonpayment of taxes, a lien could be filed against the parent’s home.
Who holds the future interest known as a remainder?
The future interest is called a remainder, and the holder of this interest is called the remainderman. Remainders are subdivided into two principal categories: contingent remainders and vested remainders.
What is an alternative contingent remainder?
A pair of remainders that have opposite conditions precedent. LIFE EVENTS. property & real estate law.
Can a remainder follow a fee simple determinable?
However, a possibility of reverter does not follow a fee simple determinable subject to an executory interest. … A fee simple determinable does not violate the rule against perpetuities, since the interest in real property reverts to the grantor or his heirs, who are measuring lives.
What does vested remainder subject to open?
Noun. vested remainder subject to open (plural vested remainders subject to open) (law) A future interest held by a member of a class, for which the interest is certain to vest, but for which new members may enter the class before the interest vests, thereby reducing each member’s share of the total interest.
What's the difference between reversionary interest and remainder interest in a property?
The key difference between a reversion and a remainder is that a reversion is held by the grantor of the original conveyance, whereas “remainder” is used to refer to an interest that would be a reversion, but is instead transferred to someone other than the grantor.
Can you assign a remainder interest?
A reversionary interest is assigned by a short deed in which the assignor states that he is entitled in remainder, subject to the prior life interest of the named beneficiary in the trust fund.
What happens when a life tenant dies?
Upon the life tenant’s death, the property passes to the remainder owner outside of probate. The remainderman typically only needs to go to the recording office with a copy of the death certificate. They can sell the property or move into and claim it as their primary residence (homestead).
What is a remainder in land law?
Related Content. An interest in a trust (or under the terms of a will), where the beneficiary’s possession and enjoyment of the trust assets is postponed by a prior interest in the same assets. For example, Doreen dies and in her will leaves her husband, Alf, a life interest in Rose Cottage.
Is a life estate fee simple?
The fee simple absolute is inheritable; the life estate is not. … A life estate pur autre vie is an estate that the grantee holds for the life span of another person. For example, the grantor conveys the property “to grantee for the life of A.” A life estate is usually created by deed but can be created by a lease.