REMAINDER PERSON
Back to GlossaryDefinition
The individual or entity entitled to receive the assets that remain in the trust at the date of the trust's termination.
Summary
A remainder person is an individual who has a future interest in property that will become possessory after a prior estate naturally expires (not through breach or condition). Unlike a reversion (which goes back to the grantor), a remainder goes to a third party. The remainder person holds this future right while someone else currently possesses the property, and their interest will 'kick in' when the preceding estate ends according to its own terms.
Usage Context
This term is crucial when studying property law, estate planning, and future interests. Understanding remainder persons is essential for analyzing property conveyances, determining who has what rights in property over time, and planning transfers that span multiple generations or time periods.
Common Confusions
- Thinking the remainder person can take possession immediately
- Confusing remainder with reversion (remainder goes to third party, reversion goes back to grantor)
- Assuming the remainder person has no rights until the prior estate ends
- Mixing up remainder persons with beneficiaries in a will or trust
- Not understanding that the remainder interest itself can be transferred or inherited
