Legal Definitions - estate in remainder

An estate in remainder refers to a future interest in property that is created at the same time as a prior, temporary interest, and is set to become fully effective and possessory (meaning the owner gets to use and control it) only after that prior interest naturally ends.

Essentially, someone holds a current, temporary right to use or benefit from a property, and another person or entity holds a certain, future right to that same property once the temporary right expires. The holder of the estate in remainder has a vested right to the property, even though they cannot yet possess or use it.

• Example 1: Family Will and a Home

  A will states, "I leave my family home to my spouse, Sarah, for the duration of her life. Upon Sarah's death, the home shall pass to our children, David and Emily."

  Explanation: Sarah has a "life estate," meaning she can live in and use the home for as long as she lives. David and Emily, the children, hold an estate in remainder. They have a certain, future interest in the home that will become possessory only after Sarah's death. They cannot sell or live in the home now without Sarah's agreement, but their right to own it in the future is established and cannot be taken away.

• Example 2: Charitable Trust

  A wealthy donor establishes a trust that directs the trust income to be paid to their elderly cousin, Robert, for his lifetime to support his living expenses. The trust document further specifies that upon Robert's death, the entire principal (the main body of assets) of the trust is to be distributed to a specific animal welfare charity.

  Explanation: Robert has a life interest in the trust's income. The animal welfare charity holds an estate in remainder in the trust's principal. The charity's right to receive the trust assets is certain, but it is postponed until Robert's life interest in the income naturally terminates upon his death.

• Example 3: Gift of Land with Retained Use

  An elderly farmer, wanting to ensure his land stays in the family, deeds a large parcel of farmland to his granddaughter, Maria. However, the deed explicitly states that the farmer retains the right to farm the land and live in the farmhouse for the remainder of his own life.

  Explanation: The farmer has retained a life estate, allowing him to continue using the land. Maria, the granddaughter, receives an estate in remainder. She now legally owns a future interest in the farmland, but her right to take full possession and control of it is deferred until her grandfather's death. Her ownership is certain, but her enjoyment of the property is postponed.