An executory remainder is a legal term used in property law to describe a future interest in real estate or land. An individual can create an executory remainder as part of an estate plan that allows for future ownership of the property. In essence, an executory remainder grants transfer of the property at a later date, creating a right of enjoyment for the remainderman or remainderperson.
What Are the Different Types of Executory Remainders?
The two primary and most common types of executory remainders are vested and contingent remainders. A vested remainder is a future interest that is unconditional and has the right to immediate possession of the property when set conditions have been met. A contingent remainder is a future interest that is dependent upon certain conditions being met or not met such as the death of someone or the occurrence of an event. Vested and contingent remainders can also be combined or further classified, such as an executory interest and a determinable fee.
Creating an Executory Remainder: What to Consider
When creating an executory remainder, individuals must keep in mind that any interest in property must conform to the local law of the state. Additionally, executory remainders can only be created in the present, and not for interests that are in the distant future. Further, it’s important to remember that an executory remainder must be valid under the current law of the property’s jurisdiction.
The language used to create an executory remainder must meet certain criteria in order to be considered valid. The language or conditions must be unambiguous, and it must meet the local legal requirements of the jurisdiction in question. As such, individuals should seek the advice of a lawyer or an attorney for help in creating an executory remainder.
Conclusion: What Else Do You Need to Know About Executory Remainders?
In conclusion, an executory remainder is a legal concept used in property law. It allows for the transfer of ownership of the property at a later date, allowing the remainderman or remainderperson the right of enjoyment. Executory remainders can be classified as vested or contingent, and must meet certain requirements in order to be valid. To guarantee that their executory remainder meets local laws and legal requirements, individuals should consult with legal professionals before creating one.