What term refers to a future interest that comes into existence after the termination of a prior interest?

What term refers to a future interest that comes into existence after the termination of a prior interest?

• A. Life Interest
• B. Remainder
• C. Joint Tenancy
• D. Gift Splitting

Answer: (B)

This question tests understanding of a future interest that takes effect after the current estate ends. A remainder is exactly that: a future interest created in a transferee that will become possessory immediately when the preceding estate terminates. For example, if property is conveyed "to A for life, then to B," A has the life estate, and B holds a remainder that becomes possessory when A dies. This differs from a life estate, which is a present interest held for the duration of someone's life and ends rather than waiting for a future event to occur. Joint tenancy is a form of concurrent ownership, not a future interest, and gift splitting is a tax concept, not about future property interests. So the term that fits the description is remainder.

This question tests understanding of a future interest that takes effect after the current estate ends. A remainder is exactly that: a future interest created in a transferee that will become possessory immediately when the preceding estate terminates. For example, if property is conveyed "to A for life, then to B," A has the life estate, and B holds a remainder that becomes possessory when A dies. This differs from a life estate, which is a present interest held for the duration of someone's life and ends rather than waiting for a future event to occur. Joint tenancy is a form of concurrent ownership, not a future interest, and gift splitting is a tax concept, not about future property interests. So the term that fits the description is remainder.