Legal Definitions - remainder indefeasibly vested

A remainder indefeasibly vested describes a future interest in property that is absolutely certain to belong to a specific person or group, and nothing can prevent them from eventually taking full ownership once the preceding interest ends. It's a highly secure form of future ownership.

Let's break down the terms:

• Remainder: This refers to a future interest in property that becomes effective after another, earlier interest (like a life estate) naturally expires. It's what's "left over" for someone else.
• Vested: This means the right to the property is fixed and certain. The person who will eventually own the property is identifiable, and there are no conditions that could prevent them from taking possession once the preceding interest ends.
• Indefeasibly: This emphasizes that the vested interest cannot be defeated, taken away, or changed by any future event or condition. It is absolute and unchallengeable.

In essence, if you have a remainder indefeasibly vested, you have an unshakeable right to future ownership of property, guaranteed to come into your possession at a specific, predictable time (e.g., upon someone's death).

Examples:

• Example 1 (Residential Property):

  A will states: "I grant my family home to my spouse, Eleanor, for the duration of her life. Upon Eleanor's death, the home shall pass to my daughter, Chloe."

  Explanation: Eleanor has a life estate, meaning she can live in the home for her lifetime. Chloe has a remainder indefeasibly vested. Chloe is alive and identifiable, and there are no conditions that could prevent her from owning the family home after Eleanor dies. Her right to the property is absolute and cannot be defeated.

• Example 2 (Investment Portfolio in a Trust):

  A trust document specifies: "The income generated by this investment portfolio shall be paid to my brother, Marcus, for his lifetime. Upon Marcus's death, the entire principal of the portfolio shall be distributed equally to my nieces, Sarah and Jessica."

  Explanation: Marcus receives the income for life. Sarah and Jessica (who are both alive and identifiable) have a remainder indefeasibly vested in the investment portfolio's principal. No conditions exist that could divest them of their right to receive the principal after Marcus's death. Their interest is certain and cannot be defeated.

• Example 3 (Commercial Building):

  A property deed conveys a commercial building "to my business partner, David, for his life, and then to my son, Michael."

  Explanation: David has a life estate, allowing him to use and profit from the commercial building during his lifetime. Michael has a remainder indefeasibly vested. Michael is alive and identifiable, and his right to own the commercial building after David's death is absolute and cannot be defeated by any future event or condition. He is guaranteed to become the owner.