Quick Answer: What Is The Difference Between A Remainder And An Executory Interest?

What is a contingent remainder interest?

There are two types of remainders in property law: vested and contingent.

A vested remainder is held by a specific person without any conditions precedent; a contingent remainder is one for which the holder has not been identified, or for which a condition precedent must be satisfied..

What is an alternative contingent remainder?

A pair of remainders that have opposite conditions precedent. wills. property & real estate law.

What’s the difference between reversionary interest and remainder interest in a property?

Remainder interest: The creator of the life estate may name a remainderman as the person to whom the property will pass. Reversionary interest: The creator of life estate chooses not to name a remainderman, in which case the creator will recapture ownership.

What is an executory interest in property?

An executory interest is any future interest held by a person other than the transferor which cannot be classified as a remainder. … There are two types of executory interest: springing and shifting. Springing executory interests transfer ownership from the grantor to a third party.

Who holds the future interest known as a remainder?

remaindermanRemainder, in Anglo-American law, a future interest held by one person in the property of another, which, upon the happening of a certain event, will become his own. The holder of this interest is known in legal terms as a remainderman.

What does Remainderman mean?

A remainderman is a property law term that refers to the person who inherits or is entitled to inherit property upon the termination of the life estate of the former owner. … That person to whom ownership of the property is transferred is the remainderman.

Is a life estate fee simple?

Estates of Freehold This can include estate in fee simple, or life estate. … The estate in fee simple is capable, indefinitely, of transfer inter vivos or devolution on death. Thus, it is an estate of uncertain, indefinite duration, and could, in theory, last forever.

What does fee simple mean?

Fee simple is a term that refers to real estate or land ownership. The owner of the property has full and irrevocable ownership of the land and any buildings on that land. He is free to do whatever he wishes on the land subject to local zoning ordinances. … Fee simple is the highest form of property ownership.

What are the two types of fee simple estate?

Fee simple estates, like all estates, remain subject to government restrictions and private interests. There are two forms of fee simple estate: absolute and defeasible.

What are the two types of fee simple Defeasible?

Are There Different Types of Fee Simple Defeasible? Fee Simple Determinable. A fee simple determinable automatically ends the interest in the property when a condition is violated or not met. … Fee Simple Subject To Condition Subsequent. … Fee Simple Subject To Executory Limitation.

What is a fee simple subject to executory interest?

A fee simple subject to an executory limitation is an estate that ends when a specific condition is met and then transfers to a third party. The interest will not revert to the grantor. If the condition is met, the grantee loses the interest and the third party gains it automatically.

What is a remainder property?

A remainder is a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years.

What is the purpose of the rule against perpetuities?

The rule against perpetuities is a legal rule in the Anglo-American common law that prevents people from using legal instruments (usually a deed or a will) to exert control over the ownership of private property for a time long beyond the lives of people living at the time the instrument was written.

What is a remainder in land law?

A remainder interest happens when the owner of an asset transfers the legal title of the asset to another person AND retains, or grants to a third person, an interest in the asset for life or a specified length of time. The interest held by the person is called a remainder interest.

Can you transfer a contingent remainder?

Although it was held that a contingent remainder could not be transferred inter vivos, nevertheless, if the contingent remainder- man attempted to alienate and the remainder subsequently vested in his lifetime, the remainder under certain circumstances passed by way of estoppel to the alienee.