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KembaraXtra – Legal Terms – Remainder
A remainder is a future interest in land that becomes possessory only when a prior interest comes to an end. It is commonly created through a settlement or trust arrangement. For example, land may be granted to one person for life, with ownership passing to another person after the life tenant’s death. Until the prior interest ends, the holder of the remainder has no right to immediate possession. The interest exists in anticipation of future enjoyment.
A remainder arises only after a preceding estate. Consider a settlement granting land to B for life and then to C in fee simple. During B’s lifetime, C holds the property in remainder. When B dies, C’s interest becomes possessory. The transfer occurs automatically according to the terms of the settlement. No further conveyance is required to bring the interest into possession.
Several successive remainders may be created within the same settlement. For example, land may be granted to A for life, then to B for life, then to C in tail, and finally to D in fee simple. Each future holder possesses a remainder interest that takes effect in sequence. These individuals are known as remaindermen. Their rights depend upon the termination of the preceding estates.
Under modern law, interests in remainder are necessarily equitable interests. They exist within the framework of trusts and equitable ownership. Although the remainderman lacks immediate possession, the interest has recognized legal value. It may be transferred, inherited, or otherwise dealt with according to law. The interest therefore constitutes a significant form of property right.
A remainder differs from a reversion, which arises when property returns to the grantor after a prior interest ends. In contrast, a remainder passes to a third party designated in advance. The concept allows property owners to control the future succession of land. It has long played a central role in estate planning and settlements. Remainders remain an important component of property law and trust law.
A remainder is a future interest in land that becomes possessory only when a prior interest comes to an end. It is commonly created through a settlement or trust arrangement. For example, land may be granted to one person for life, with ownership passing to another person after the life tenant’s death. Until the prior interest ends, the holder of the remainder has no right to immediate possession. The interest exists in anticipation of future enjoyment.
A remainder arises only after a preceding estate. Consider a settlement granting land to B for life and then to C in fee simple. During B’s lifetime, C holds the property in remainder. When B dies, C’s interest becomes possessory. The transfer occurs automatically according to the terms of the settlement. No further conveyance is required to bring the interest into possession.
Several successive remainders may be created within the same settlement. For example, land may be granted to A for life, then to B for life, then to C in tail, and finally to D in fee simple. Each future holder possesses a remainder interest that takes effect in sequence. These individuals are known as remaindermen. Their rights depend upon the termination of the preceding estates.
Under modern law, interests in remainder are necessarily equitable interests. They exist within the framework of trusts and equitable ownership. Although the remainderman lacks immediate possession, the interest has recognized legal value. It may be transferred, inherited, or otherwise dealt with according to law. The interest therefore constitutes a significant form of property right.
A remainder differs from a reversion, which arises when property returns to the grantor after a prior interest ends. In contrast, a remainder passes to a third party designated in advance. The concept allows property owners to control the future succession of land. It has long played a central role in estate planning and settlements. Remainders remain an important component of property law and trust law.
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