Remainder (law)

In property law of the United Kingdom and the United States and other common law countries, a remainder is a future interest given to a person (who is referred to as the transferee or remainderman) that is capable of becoming possessory upon the natural end of a prior estate created by the same instrument. Thus, the prior estate must be one that is capable of ending naturally, for example upon the expiration of a term of years or the death of a life tenant. A future interest following a fee simple absolute cannot be a remainder because of the preceding infinite duration. For example: A person, , conveys (gives) a piece of real property called "Blackacre" "to for life, and then to and her heirs". receives a life estate in Blackacre. holds a remainder, which can become possessory when the prior estate naturally terminates ('s death). However, cannot claim the property during 's lifetime. There are two types of remainders in property law: vested and contingent. A vested remainder is held by a specific person without any conditions ("conditions precedent"); a contingent remainder is one for which the holder has not been identified, or for which a condition precedent must be satisfied. A remainder is vested if both The remainder is given to a presently existing and ascertained person. It is not subject to a "condition precedent". There are three types of vested remainders: indefeasibly vested vested subject to open vested subject to divestment. An indefeasibly vested remainder is certain to become possessory in the future, and cannot be divested. For example conveys to " for life, then to and 's heirs." has an indefeasibly vested remainder, certain to become possessory upon termination of 's life estate (when dies). or 's heirs will clearly be entitled to possession upon ’s death. Vested remainders subject to open are rare. The most common example is " conveys Blackacre to for life, remainder to the children of in fee simple, and has two children and ".