Question: What Is A Remainder In Land Law?

What is the difference between a reversion and a remainder?

The key difference between a reversion and a remainder is that a reversion is held by the grantor of the original conveyance, whereas “remainder” is used to refer to an interest that would be a reversion, but is instead transferred to someone other than the grantor..

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.

Does a Remainderman own the property?

The new owner, or remainderman, has an interest in the house or land, but he or she has no right of occupying the property. This also means he or she cannot sell it, rent it or alter it until the life tenant passes on or leaves permanently.

What happens if a life tenant moves out?

Furthermore, include language that if the life tenant moves out for any reason, the tenancy ends. This will give the remainderman the opportunity to either rent out the property, move in as a personal residence or sell.

What happens if a Remainderman dies?

If there is a single remainderman and they pass away before the life estate holder, the property passes in accordance with the will, trust, or laws of the state of the remainderman when the life estate ends.

Can you sell a house that is in a life estate?

A person owns property in a life estate only throughout their lifetime. Beneficiaries cannot sell property in a life estate before the beneficiary’s death. One benefit of a life estate is that property can pass when the life tenant dies without being part of the tenant’s estate.

What is a remainder interest?

A remainder interest gives the holder the right to take ownership when the life estate has ended. … The IRS has published tables that are used to value the life interest in the property. The difference between the appraised value and the life interest is the remainder interest.

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.

Can you sell a remainder interest?

Sale of the Property A remainderman may sell his interest in the property, but the buyer would take the property subject to the rights of life tenant. … If the life tenant and the remainderman both agree and sign transfer documents, the property can be sold before the life tenant dies.

Can a Remainderman be changed?

The donor/grantor may then exercise the limited power of appointment to change the remainderman provided that s/he has the mental capacity required to transfer the property and that the change in remainderman is done through a properly executed written instrument.

What does it mean to have lifetime rights to a piece of property?

A Life Estate may be created in real property or in personal property. It is a term used to describe ownership of an asset for the duration of the person’s life. The owner of a Life Estate is called a ‘life tenant’. The life tenant has the right to possession and enjoyment of the asset and its income until their death.

Who is Reversioner possession?

The residue of an estate left in the grantor, to commence in possession after the determination of some particular estate granted out by him; it is also defined to be the return of land to the grantor, and his heirs, after the grant is over.

Is a Remainderman a beneficiary?

The other category of beneficiaries are those who will receive the trust property itself, and these persons are referred to as remaindermen. A beneficiary may be both an income beneficiary and remainderman.

Can a life tenant be evicted?

Generally speaking you can not “evict” a life tenant unless you can prove that they have committed some type of wrong to the property (some states call it “waste”). But it is not something that you should think to attempton your own. It is not like a “regular” tenant and you were not the grantor of the life estate.

Do you own the property in fee simple?

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 and fee simple absolute are the same thing.