Contingent remainder

contingent remainder

n. an interest, particularly in real estate property, which will go to a person or entity only upon a certain set of circumstances existing at the time the title-holder dies. Examples of those potential circumstances include surviving one's brother or still operating the family farm next door. (See: contingent, contingent interest, future interest)

CONTINGENT REMAINDER, estates. An estate in remainder which is limited to take effect, either to a dubious and uncertain person, or upon a dubious and uncertain event, by, which no present or particular interest passes to the remainder-man, so that the particular estate may chance to be determined and the remainder never take effect. 2, Bouv. Inst. n. 1832. Vide Remainder.

References in periodicals archive ?
In the agreement, Givens named herself as the only contingent remainder beneficiary.
As a report from the law firm Katten Muchin Rosenman notes, "The ability to use essentially unlimited numbers of individuals named as Crummey Power holders to absorb the cost of insurance premiums on trust-owned life insurance (so long as the individual has a contingent remainder interest in the trust) has long been viewed as abusive by the Internal Revenue Service.
7) Robert and Myra Kraft's grandchildren were the contingent remainder beneficiaries of these subtrusts.
In Cristofani, (8) the Tax Court allowed a present-interest exclusion based on a contingent remainder beneficiary's right to withdraw a portion of a gift to the trust.
The problematic part concerns the treatment of the interest held by another JT in which the taxpayer has but a contingent remainder interest.
X7XP [section]1361(e)(1)(A)(i) prescribes that, prior to 1998, charitable organizations may hold only contingent remainder interests in an ESBT.
T]he IRS will deny exclusions for powers held by individuals who either have no property interests in the trust except for Crummey powers, or hold only contingent remainder interests.
Note that, for 1997, certain charitable organizations may hold only contingent remainder interests and cannot be beneficiaries.
The Service has indicated its intent to deny exclusions for gifts to holders of Crummey withdrawal powers when (1) the powerholders have no beneficial interest in the trust other than their withdrawal powers; (2) the powerholders hold only contingent remainder interests or discretionary income interests; or (3) the facts and circumstances indicate a prearranged understanding that the powerholder will not exercise his or her withdrawal power.
In this case, the court held that Crummey powers given to the donor's grandchildren, who were contingent remainder beneficiaries, were effective.
Commissioner, 86 TC 1156 , 1986) which involved nonqualified heirs who held remote contingent remainder interests that followed a life estate held by the decedent's children.
It was held that the value of the gift of the contingent remainder interest equaled the market value of the property transferred, minus (1) the present value of the grantor's retained income interest in the property (determined under Sec.