Legal Definitions - remainderer

A remainderer is a person or entity designated to receive the full ownership or possession of property after a preceding interest in that property has naturally ended. This preceding interest is often a "life estate," where someone has the right to use and enjoy the property for their lifetime, or a "term of years," where someone has the right for a specific period. The remainderer's right to the property is established at the same time the preceding interest is created, but their actual possession is delayed until the prior interest concludes.

• Example 1: Estate Planning Through a Will

  An elderly woman, Mrs. Albright, drafts her will. She wants her long-time housekeeper, who has no other home, to live in her country cottage for the remainder of the housekeeper's life. After the housekeeper passes away, Mrs. Albright specifies that the cottage should go to her nephew, David.

  In this situation, Mrs. Albright's housekeeper holds a "life estate" in the cottage. David is the remainderer because he is the individual designated in the will to receive full ownership of the cottage only after the housekeeper's life estate naturally terminates (i.e., upon the housekeeper's death). David's interest is a future right, established now, but his actual possession is delayed.

• Example 2: Trust Agreement for Financial Assets

  A philanthropist, Mr. Henderson, establishes a trust fund. The trust document dictates that the annual income generated by a specific portfolio of investments should be paid to his daughter, Lisa, for a period of 20 years. After those 20 years have passed, the entire principal (the original investment portfolio) of the trust is to be distributed to Mr. Henderson's alma mater, State University.

  Lisa has an interest for a "term of years" (20 years) in the trust's income. State University is the remainderer because it is the entity designated to receive the trust's principal after Lisa's preceding interest in the income concludes. The university's right to the principal is fixed when the trust is created, but its actual receipt is postponed.

• Example 3: Real Estate Deed Transfer

  A couple, the Johnsons, decide to transfer ownership of their beachfront condo. They execute a deed that grants their retired neighbor, Mr. Kim, the right to use and occupy the condo for as long as he lives. The same deed also explicitly states that upon Mr. Kim's death, full and complete ownership of the condo will automatically transfer to their local community art center.

  Mr. Kim holds a "life estate" in the condo, meaning he has the right to possess and enjoy it during his lifetime. The community art center is the remainderer because it is the entity named in the deed to receive the full, unencumbered ownership of the condo immediately upon the natural termination of Mr. Kim's life estate. The art center's future right to the property is established by the deed at the time of its creation.