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 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.
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.
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.
Joint tenancy has been characterized as a specialized form of a life estate, amounting to a contingent remainder in the fee, the contingency being dependent on which joint tenant survives.
2503(a) annual exclusions for gifts in trust to beneficiaries holding only contingent remainder interests, coupled with a Crummey(16) withdrawal right.
of Cristofani,(10) the IRS argued that the beneficiaries in Crummey had, in addition to the immediate right of withdrawal, "substantial, future economic benefits" in the trust, while the Cristofani beneficiaries had only a withdrawal right and a contingent remainder interest.
This may cause wastage of the GSTT exemption if the grandchildren are merely contingent remainder interest holders and not ultimate distributees.
all of the trusts beneficiaries must be individuals or estates eligible to be S shareholders (however, charitable organizations may hold contingent remainder interests); 2.
A charitable organization can even have a contingent remainder interest in an ESBT However, for purposes of dealing with the number of shareholders, each potential ESBT income beneficiary is counted as a shareholder.