Remainder Estate

The Remainder Estate is the interest in real estate of the person named to receive property at the termination of a life estate

 

Example:  A spouse receives a life estate in a house that goes to the children at his/her death.  The children have a remainder estate

 

•A remainder estate can be sold

•The value would probably be based on the life expectancy of the holder of a life estate

 

A remainder estate is a future interest in real estate.  In the event of a life estate, the person who has remainder rights has no current rights.

 

Example:  The surviving spouse has a life estate in the marital residence.  Two children have a remainder estate.  One child buys the remainder estate from the other.  When the surviving spouse dies, the child who owned the remainder estate will own the residence in fee simple.  The second child gave up his/her rights when the remainder estate was sold.

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