Legal Definitions - Vested remainder

A vested remainder refers to a future interest in property that is certain to be received by a specific, identifiable person or entity, without any conditions needing to be met before they can take possession. The only thing preventing immediate possession is the natural end of an earlier property interest, such as a life estate.

In simpler terms, it's a guaranteed future right to property where:

• The person or group who will eventually receive the property is clearly known (an "ascertained taker").
• There are no "if-then" conditions that must occur before that person or group can claim the property (no "condition precedent").

The individual or entity holding a vested remainder simply has to wait for the preceding property interest to naturally expire.

Examples:

• Family Home in a Will:

  Imagine a will that states, "I leave my house to my spouse, Eleanor, for her lifetime. Upon her death, the house shall go to my daughter, Maria."

  How this illustrates a vested remainder: Maria has a vested remainder interest in the house. She is an ascertained taker (specifically named), and her right to the house is certain. There are no conditions she needs to fulfill; she simply has to wait for Eleanor's life estate to end naturally upon Eleanor's passing. Maria's right to the house is fixed and cannot be taken away, even though she cannot possess it immediately.

• Farmland Deed:

  A property owner executes a deed that grants a large farm "to my son, Robert, for as long as he lives, and then to my granddaughter, Emily, and her heirs."

  How this illustrates a vested remainder: Emily holds a vested remainder in the farm. She is a specific, identifiable person (an ascertained taker), and her claim to the farm is fixed and guaranteed. No other events or conditions need to occur for her to eventually take full ownership, other than Robert's passing. Her interest is certain to become possessory.

• Trust for an Investment Property:

  A trust document specifies that all rental income from an apartment building will go to the grantor's friend, David, for his entire life. After David's death, the apartment building itself is to be transferred outright to the grantor's favorite charity, "Helping Hands Foundation."

  How this illustrates a vested remainder: The Helping Hands Foundation possesses a vested remainder interest in the apartment building. The Foundation is an ascertained taker (a specific, identifiable entity), and its right to receive the property is not dependent on any conditions other than the natural termination of David's life interest. The Foundation's future ownership is certain.