LawMeaning

Remainder Interest

In one sentence

The right to receive property after someone else's temporary interest ends.

Plain English

A Remainder Interest is the right to own property in the future, after someone else's current rights to it expire. For example, if your mother has a life estate in a house and you have the remainder interest, you'll own the house when your mother passes away. The remainder person has to wait, but they have a guaranteed future claim to the property.

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Example

A father gives his house to his wife for her lifetime (a life estate), with the remainder interest going to his two adult children. When the wife dies, the children automatically become the owners of the house.

Used in a sentence

“The trust document gave the surviving spouse a life estate and the children a remainder interest in the family property.”

Related terms

Life Estate
The right to use and enjoy property during someone's lifetime only.
Fee Simple
Complete ownership of property with no restrictions or time limits.
Reversionary Interest
The right to reclaim property when someone else's temporary interest ends.
Testamentary Capacity
The legal and mental ability required to make a valid will or trust.
Intestate Succession
The legal process of distributing a deceased person's property when they leave no valid will.
Trust Instrument
The legal document that creates a trust and outlines how assets will be managed and distributed.
Probate
The court process of validating a will and distributing a deceased person's estate.
Elective Share
A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.