Legal Definitions - indefeasible remainder

An indefeasible remainder refers to a future interest in property that is absolutely guaranteed to a specific person or entity, with no conditions or uncertainties that could prevent them from eventually receiving it. The term "indefeasible" means it cannot be defeated, revoked, or lost. Essentially, the person holding an indefeasible remainder is certain to acquire full ownership of the property at some point in the future, typically after a preceding interest (like a life estate) has ended.

Unlike other future interests that might depend on specific events occurring or not occurring, an indefeasible remainder is vested and unconditional. The future owner's right to the property is fixed and cannot be taken away.

Here are some examples to illustrate this concept:

• Example 1: A Will Granting Property After a Life Estate

  Imagine a will that states: "I grant my primary residence to my husband, Arthur, for the duration of his life. Upon Arthur's death, the residence shall pass to my daughter, Brenda, and her heirs."

  How it illustrates the term: Brenda holds an indefeasible remainder in the residence. She is guaranteed to inherit the property after her father, Arthur, passes away. There are no conditions she needs to fulfill (like getting married, having children, or living in a specific place) for her to receive the property. Her right to the home is certain and cannot be defeated.

• Example 2: A Trust Distributing Assets Upon Reaching a Certain Age

  A wealthy aunt establishes a trust for her nephew, Charles. The trust document specifies that Charles will receive the income from the trust until he turns 35. At that point, the entire principal (the main body of assets) of the trust will be distributed to him, outright and without any further conditions.

  How it illustrates the term: Charles possesses an indefeasible remainder in the trust's principal. Once he reaches 35, he is absolutely certain to receive the full amount. His right to the principal is fixed and cannot be lost due to any subsequent event or requirement; it simply awaits the passage of time.

• Example 3: A Deed Reserving a Life Interest

  A property owner, Ms. Davies, deeds her vacation cabin to her grandson, Ethan. However, the deed includes a clause stating that Ms. Davies retains the right to use and live in the cabin for the remainder of her life. The deed explicitly states that upon Ms. Davies's death, full ownership of the cabin will transfer to Ethan, unconditionally.

  How it illustrates the term: Ethan holds an indefeasible remainder. His future ownership of the cabin is certain and cannot be revoked or altered. His right is vested and absolute, simply waiting for Ms. Davies's life interest to conclude.