The term "remainderman" represents a common term in property law. It pertains to an individual who is entitled to inherit property after the life estate owner's death. A life estate is a property ownership arrangement wherein a person's title to a property lasts for their lifespan before reverting back to the original owner or transferring to any designated third party.
The remainderman is the person to who the property goes after the life estate ends. This transfer of property, however, only occurs when all required expenses have been settled.
A remainderman's privileges extend to the point of controlling and utilizing the property held in the trust once it has been wholly dissolved. For instance, when the former property owner leaves a property for Person A's life use and designates it to be inherited by Person B after Person A's death, Person B is acknowledged as the remainderman with future interest in this property.
However, Person B's rights are only activated upon Person A's death. They then inherit the property, or any remainders of it, after the former owner’s death or termination of the estate.
The various rights of possession for both the life tenant and the remainderman need to be understood in real estate dealings. The remainderman possesses an ownership interest even during the life tenant's lifetime, and this prevents the life tenant from causing damage, reducing its value, indebting it, or trying to sell it without the remainderman's consent and participation.
Typically, a life estate deed - a legal document by which a property owner or grantor transfers ownership to another person - provides a guarantee to the life tenant to use the property for their lifespan. It also often states who the remainderman should be after the life tenant's demise.
A common use of life estates is to provide for a person's needs without granting outright property ownership. For instance, a deceased homeowner could leave their family home to their spouse in a life estate but list their offspring as the remaindermen. These arrangements provide a haven for the spouse and ensure offspring will eventually inherit the family property.
A life estate deed helps in transferring property upon the life tenant's death, avoiding it being part of the deceased's estate, and by-passing the probate process. This implies that the life tenant’s interest in the property ends with their death and doesn't become part of their estate.
Lastly, it’s worth noting that a life estate can't be revoked unless all parties, including the life tenant and the remainderman, agree. Owning a life estate can also impact eligibility for some social services as it's considered a monetary asset.