Legal Definitions - accelerated remainder

An accelerated remainder refers to a situation where a future interest in property, known as a "remainder," becomes effective and takes possession earlier than originally anticipated. This typically occurs because the preceding estate or interest in the property terminates prematurely, rather than at its natural or planned conclusion.

Here are some examples to illustrate this concept:

• Example 1: Disclaimed Life Estate

  A will states that a family vacation home is to go "to my brother, John, for his life, and then to my niece, Sarah." John, however, decides he doesn't want the responsibility of maintaining the home and formally disclaims his life interest shortly after the will is probated. Because John's life estate has ended prematurely due to his disclaimer, Sarah's remainder interest in the vacation home accelerates. She immediately becomes the full owner of the property, rather than having to wait until John's death.

• Example 2: Forfeiture Clause in a Trust

  A trust document specifies that income from an investment portfolio is to be paid "to my son, David, until he reaches the age of 40, at which point the entire principal balance will be distributed to my daughter, Emily." The trust also includes a clause stating that if David attempts to assign or sell his right to the income, his interest in the trust will immediately terminate. If David, at age 35, tries to sell his income stream to a third party, his interest in the trust income is forfeited. As a result, Emily's remainder interest in the principal accelerates, and she receives the entire investment portfolio immediately, five years earlier than planned.

• Example 3: Invalid Prior Interest

  A property deed grants a piece of land "to the local community garden for a period of 15 years, and then to the city's historical society." Later, it is discovered that the grant to the community garden was legally invalid from the start due to a technical error in the deed's drafting that violated a specific state property law. Since the initial 15-year interest granted to the community garden never legally came into existence, the historical society's remainder interest in the land accelerates. The historical society immediately gains full ownership of the property, as there is no valid preceding estate to wait for.