Legal Definitions - Vested remainder

Definition: A vested remainder is a type of future interest in property that refers to a remainder with an ascertained taker and with no condition precedent. This means that the person who will receive the property after the current owner dies is already known and there are no conditions that need to be met before they can receive it.

Example: John owns a house and wants to leave it to his daughter, Sarah, after he dies. He sets up a trust that gives Sarah a vested remainder in the property. This means that as soon as John dies, Sarah will become the owner of the house without any conditions or requirements.

Explanation: In this example, the vested remainder is Sarah's right to inherit the house after John dies. Because Sarah is an ascertained taker (she is specifically named as the person who will receive the property), and there are no conditions precedent (no requirements that must be met before she can receive the property), her remainder is considered vested.

Example: Mary sets up a trust that gives her son, Tom, a vested remainder in a piece of land. However, the trust also states that if Tom dies before Mary, the land will go to his children. In this case, Tom's remainder is still considered vested because he is an ascertained taker and there are no conditions precedent. However, if Tom were to die before Mary, his children would become the new ascertained takers and would have a vested remainder in the land.

Explanation: In this example, Tom's remainder is still considered vested because he is an ascertained taker and there are no conditions precedent. The fact that the property will go to his children if he dies before Mary does not affect the vested nature of his remainder. However, if Tom were to die before Mary, his children would become the new ascertained takers and would have a vested remainder in the land.