What is a remainderman in a will or trust?
The remainderman is the person who inherits property after the termination of a life estate. For trust accounts, the remainderman receives the remaining principal after the estate has been distributed. A remainder interest is a future interest a person has in an asset.
Who can be a remainderman?
The life tenant is the person who has the life estate, or entitlement to the use of property during their lifetime. The second party is the remainderman, or person with a remainder interest who is entitled to full ownership upon the death of the life tenant.
What happens to the estate of the remainderman?
The remainderman is the person who receives the real estate on the life estate deed. If the remainderman dies before the life estate holder, his interest in the property may pass to his heirs or any other remaindermen named on the life estate deed.
How is a remainder interest created in a will?
The remainder interest can be created by a will, a trust agreement, or a deed. In turn, a remainderman is a person who holds a remainder interest in property. A will or a trust can create various types of interests in property, depending upon how the property is distributed.
Can a life estate deed be transferred to a remainderman?
When using a life estate deed, the property passes automatically to the remainderman upon the death of the life tenant. No need to use the probate court to effectuate a transfer. In this way, it’s similar to joint tenancy with right of survivorship.
Can a trust have more than one remainderman?
However, the creator of a trust may reserve a life estate for himself or, in the case of a couple, for the survivor. Life estates are usually created to avoid probate or for tax benefits. With a life estate, there can be a single remainderman or two of more joint remaindermen.
Who is the remainder man in a life estate?
Remainderman Rights and Life Estates As opposed to a trust, a life estate deed is a vehicle by which the property owner, or the grantor, transfers legal ownership to another person or the life tenant. In many cases, the grantor and the life tenant are the same person, but not always.
The remainder interest can be created by a will, a trust agreement, or a deed. In turn, a remainderman is a person who holds a remainder interest in property. A will or a trust can create various types of interests in property, depending upon how the property is distributed.
Can a remainderman sell his interest in a property?
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. In other words, the buyer would not have full title until the death of the life tenant, who would retain use of the property in the interim.
However, the creator of a trust may reserve a life estate for himself or, in the case of a couple, for the survivor. Life estates are usually created to avoid probate or for tax benefits. With a life estate, there can be a single remainderman or two of more joint remaindermen.