Legal Definitions - alternative remainder

An alternative remainder is a type of future interest in real property that takes effect only if another disposition fails to take effect. It is a type of remainder, which is a future interest that arises in a third person who is intended to take after the natural termination of the preceding estate.

For example, if a grant is “to A for life, and then to B or C,” B and C have alternative remainders. If A dies and B is still alive, B takes the property. If B dies before A, C takes the property. The disposition of the property is contingent on which of the two alternatives occurs.

Another example is “to A for life, and then to B, but if B dies before A, then to C.” Here, B and C have alternative remainders. If B dies before A, C takes the property. If B outlives A, B takes the property.

Alternative remainders are useful when the grantor wants to provide for multiple possible outcomes. They allow for flexibility in the disposition of property and can help avoid disputes over who should inherit the property.