Legal Definitions - ulterior remainderman

An ulterior remainderman is a person who holds a future interest in property, meaning they are designated to receive ownership *after* one or more prior estates or interests have ended. The term "ulterior" signifies that their interest is secondary or contingent, often taking effect only if a preceding future interest (another remainder) fails to vest or terminates. Essentially, they are the "next in line" or "backup" recipient if the primary designated future owner does not ultimately receive the property.

• Example 1: A Family Will

  A will states: "I leave my vacation home to my brother, Arthur, for his lifetime. Upon Arthur's death, the home shall go to my son, Brian, if he has graduated from law school by then. If Brian has not graduated from law school upon Arthur's death, then the home shall go to my daughter, Chloe."

  In this scenario, Arthur has a life estate. Brian is the primary remainderman, but his interest is contingent upon graduating from law school. Chloe is the ulterior remainderman because she is designated to receive the property only if Brian fails to meet the specified condition when Arthur's life estate ends.

• Example 2: A Trust for Descendants

  A trust document specifies: "The income from this fund shall be paid to my granddaughter, Diana, until she reaches the age of 35. At that time, the principal of the fund shall be distributed to Diana. However, if Diana passes away before reaching 35, the principal shall then be distributed to my great-grandson, Ethan."

  Here, Diana has a future interest in the principal, contingent on surviving to age 35. Ethan is the ulterior remainderman because his right to the principal only arises if Diana's primary interest fails due to her death before the specified age.

• Example 3: Conditional Gift of Land

  A deed grants a parcel of land with specific instructions: "To my cousin, Fiona, for her life. After Fiona's death, the land shall pass to my nephew, George, provided he uses it exclusively for agricultural purposes for at least five years. If George fails to use the land for agriculture as specified, then the land shall pass to my niece, Helen."

  Fiona holds a life estate. George is the primary remainderman, but his interest is subject to a condition subsequent regarding land use. Helen is the ulterior remainderman because she is the designated recipient if George's interest is defeated by his failure to meet the agricultural use condition.