Simple English definitions for legal terms
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A remainder estate is a future interest in a third person who is intended to take after the natural termination of the preceding estate. For example, if a grant is “to A for life, and then to B,” B's future interest is a remainder. The remainder estate arises in someone other than the estate's creator, its initial holder, or the heirs of either.
There are different types of remainder estates, such as:
The examples illustrate how the remainder estate works in different situations. For instance, a vested remainder is given to a known person, and the interest is not subject to any conditions. On the other hand, a contingent remainder is given to an unknown person or made subject to a condition precedent. The remainder estate is an essential concept in property law, and it helps to determine who will inherit the property after the initial holder's death.