Legal Definitions - contingent remainder

A contingent remainder is a future right to own property that is not guaranteed to take effect. It is considered "contingent" because the eventual ownership depends on either the identity of the future owner being uncertain, or a specific condition needing to be met before the current owner's right to the property ends. This means the future interest is not yet fully established or "vested."

Here are some examples to illustrate this concept:

• Example 1: Unknown Future Owner

  Imagine a will that states: "I leave my vacation home to my brother, Thomas, for his life, and then to his first child to reach the age of 30."

  Explanation: In this scenario, Thomas has a present right to use the vacation home for his lifetime. However, the future right to own the home outright (the remainder) is contingent. It is uncertain who will eventually receive the property because Thomas might not yet have a child, or if he does, none of his children might have reached the age of 30. The specific person who will take possession is unknown until a child of Thomas meets the specified age requirement, and this must happen before or at the moment Thomas's life estate ends.

• Example 2: Condition Precedent

  Consider a property deed that reads: "To my cousin, Lisa, for her life, and then to my nephew, David, provided that David has successfully completed his master's degree in engineering by the time Lisa passes away."

  Explanation: Lisa has the right to use the property for her lifetime. David's future right to own the property is a contingent remainder because it depends on a specific condition being met: he must complete his master's degree *before* Lisa dies. If Lisa passes away and David has not yet completed his degree, he will not receive the property. His interest is not guaranteed until that condition is fulfilled.

• Example 3: Alternative Contingent Remainders

  A trust document specifies: "To my daughter, Maria, for her life, then to her children who survive her; but if Maria dies without any surviving children, then to the local animal shelter."

  Explanation: Maria has a life estate. The ultimate owner of the property after Maria's death is uncertain. It could be Maria's children (if she has any who survive her), or it could be the animal shelter (if she dies without surviving children). Both possibilities are contingent because the identity of the final owner depends on events that will only be known at Maria's death. This illustrates how a contingent remainder can involve multiple potential future owners, with the actual taker determined by future circumstances.