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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
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.
Technical Advice Memorandum 9419007 provides a cautionary tale on how the IRS may rule where a trustee uses decanting essentially to permit a beneficiary to sit on a contingent remainder interest throughout her life (pending her mother's death) and then, as part of her estate planning, convince the trustee to limit her rights to her trust share to a limited power of appointment once she feels that she no longer needs the trust share to provide her with support during her lifetime.
However, a Tax Court case has held that a powerholder who is a beneficiary with only a contingent remainder interest would also qualify for the annual exclusion (e.g., grandchild would only take under the trust if his parent, who is the primary beneficiary, were deceased).
1999) (en banc) (contingent remainder holders are "owners" entitled to notice of foreclosure of deed of 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.
In Cristofani, the provision in the trust instrument giving the beneficiaries withdrawal powers included a notice requirement; however, the issue before the Tax Court was whether the withdrawal powers of contingent remainder beneficiaries were present-interest gifts.
In this case, the court held that Crummey powers given to the donor's grandchildren, who were contingent remainder beneficiaries, were effective.