What Is a Contingent Remainder?
In complex Florida estate planning, you do not have to leave a house to someone immediately. You can split the ownership across time. When you grant someone a Life Estate, they get to live in the house until they die. The person who gets the house after they die holds the "remainder."
A contingent remainder is a future inheritance that is conditional. The person waiting for the house (the remainderman) is not guaranteed to get it. They will only inherit the property if a highly specific, uncertain event happens.
Examples of Contingencies
Contingent remainders are used to control the behavior of heirs from beyond the grave. For example:
- Age Contingency: A grandfather's will says: "I leave the beach house to my wife for her life, and then to my grandson, provided my grandson has reached the age of 30." The grandson has a contingent remainder. If the wife dies when the grandson is only 25, the contingency fails. The grandson gets nothing, and the house reverts to the grandfather's estate to be sold.
- Unascertained Persons: A mother's deed says: "To my son for his life, and then to his surviving children." This is a contingent remainder because the 'surviving children' cannot be identified until the exact moment the son dies. If the son dies childless, the remainder fails.
Vested vs. Contingent
A contingent remainder is the opposite of a vested remainder. If a deed says "To my wife for life, then to my son John," John has a vested remainder. There are no conditions. John is absolutely guaranteed to get the house the second the wife dies. Even if John dies first, John's heirs will get the house.
A contingent remainder is inherently unstable. Because it might never happen, a person holding a contingent remainder usually cannot sell or mortgage their future interest, because a bank will not loan money against a house the person might never actually own.
Related Terms
- Life Estate — The current ownership interest that precedes the remainder
- Contingency — The specific condition that must be met to inherit
- Deed — The document where the remainder is legally established
Barnes Walker Estate Planning
Barnes Walker's estate planning attorneys draft highly precise deeds and trusts utilizing contingent remainders, allowing Florida property owners to exert strict, multi-generational control over their real estate assets and protect wealth from irresponsible heirs. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC