Vested Remainder Law and Legal Definition
A vested remainder is the absolute right to receive title when a presently existing interest in real property ends. It is certain to transfer after the existing interest expires, and is not dependent on any conditions or other events occuring. A "vested remainder" is created by deed or by a decree of distribution of an estate given by will. A vested remainder is a present interest in property, to be enjoyed at a future date, in which the estate is invariably fixed to belong to a particular person, after the current estate has been terminated.
Vested remainders are distinguished from contingent remainders which only take effect upon the occurence or nonoccurence of a particular event or factual condition.
There are three types of vested remainders:
- Vested remainders
- Vested remainders subject to open (or vested subject to partial divestment) – for example: “To A for life and then to the children of A and their heirs (if A already has at least one child)”. If there are more kids, the existing kids get partially divested.
- Vested remainders subject to (complete) divestment – “To A for life, then to B and his heirs, but if B marries Z, then to C and his heirs.” Based on a condition subsequent.
Legal Definition list
Related Legal Terms
- Charitable Remainder Annuity Trust
- Charitable Remainder Unitrust
- Cross Remainders
- Doctrine of Vested Rights
- Estate in Remainder
- Real Estate - Contingent Remainder
- Reinvested Earnings and Undistributed Branch Profits
- Reinvested Earnings of Indirectly Owned Direct Investment Enterprises
- Remainder Interest
- Remainder Subject to a Condition Precedent