Property I

Remainder

Remainder is a future interest created when a grantor conveys an inherently limited possessory estate and, in the same conveyance, conveys the future interest to a second grantee.

Remainders can be vested or contingent.

Vested Interest

A vested remainder is certain to become possessory to an ascertained person according to the words creating the remainder by merely waiting until the prior life estate ends.

Contingent Interest

A contingent remainder is one

  1. with a condition precedent before the remainder-holder can take possession or
  2. one that is given to an unascertained person.
Condition Precedent

A condition precedent means that something has to happen before the remainder-holder can take possession.

It's like being subject to a condition subsequent, but backwards. Something has to happen before the natural termination of the preceding estate.

e.g. O to A for life, then to B if B has reached 25 years old.

Contingent interests occur naturally at the end of the previous interest as long as the condition is met.

If a remainder first just says to someone (to B, but if B does not survive A...), it is a vested interest subject to divestment. If a remainder put the condition in the same clause (to B if B survives A), it is a contingent interest.

  • If anything has to be done first, such as kids being born or people surviving, it is contingent, not vested.

Vested remainders are descendable. Contingent remainders are not.