Vested remainder subject to complete divestment is a complex legal concept that involves the transfer of property interests. This topic delves into the intricacies of vested remainders, the conditions for their creation, and the consequences of complete divestment. By exploring these concepts, we aim to provide a comprehensive understanding of this intricate legal matter.

The concept of vested remainders refers to a property interest that becomes fixed and certain, giving the remainderman an immediate right to possession upon the termination of the preceding estate. Complete divestment, on the other hand, involves the termination of the vested remainder, resulting in the acceleration or termination of the remainderman’s interest.

Vested Remainder: Vested Remainder Subject To Complete Divestment

A vested remainder is a property interest that becomes fixed and indefeasible upon the occurrence of a specified event, even though the possession and enjoyment of the property may be postponed until a later time.

The conditions necessary for a vested remainder are:

• The identity of the remainderman must be known and certain.
• The remainderman must have a present, existing interest in the property.
• The remainderman’s interest must not be subject to any condition precedent that might defeat it.

Examples of vested remainders include:

• A remainder to A for life, then to B in fee simple.
• A remainder to A’s children who survive A.
• A remainder to A’s heirs at law.

Subject to Complete Divestment

Complete divestment, in the context of a vested remainder, occurs when the remainderman’s interest is completely extinguished before the remainder becomes possessory.

Complete divestment can affect the vested remainder in several ways:

• It can accelerate the remainder, causing it to become possessory immediately.
• It can terminate the remainder, causing it to fail completely.

Examples of complete divestment include:

• The remainderman dies before the life tenant.
• The remainderman disclaims the remainder interest.
• The remainder interest is sold or conveyed to another person.

Consequences of Complete Divestment, Vested remainder subject to complete divestment

The consequences of complete divestment for the vested remainderman can be significant:

• The remainderman loses all rights to the property.
• The remainderman may be liable for any taxes or other expenses associated with the property.
• The remainderman may have a claim for damages against the person who caused the divestment.

In some cases, complete divestment can also accelerate or terminate the vested remainder:

• If the remainderman dies before the life tenant, the remainder will accelerate and become possessory immediately.
• If the remainderman disclaims the remainder interest, the remainder will terminate and the property will pass to the next person in line of succession.

Drafting Considerations

When drafting a vested remainder subject to complete divestment, it is important to consider the following:

• The identity of the remainderman should be clearly stated.
• The conditions that could lead to complete divestment should be clearly stated.
• The consequences of complete divestment should be clearly stated.

By carefully considering these factors, attorneys can help to avoid unintended consequences when drafting vested remainders subject to complete divestment.

Examples of well-drafted vested remainders subject to complete divestment include:

• A remainder to A for life, then to B in fee simple, but if B dies before A, then to C in fee simple.
• A remainder to A’s children who survive A, but if no children survive A, then to B in fee simple.
• A remainder to A’s heirs at law, but if A disclaims the remainder interest, then to B in fee simple.

Quick FAQs

What is the difference between a vested and contingent remainder?

A vested remainder is one that is certain to take effect in the future, while a contingent remainder is one that may or may not take effect, depending on the occurrence of a future event.

What are the consequences of complete divestment for the vested remainderman?

Complete divestment can accelerate or terminate the vested remainderman’s interest, depending on the specific terms of the divestment.

How can I avoid unintended consequences when drafting a vested remainder subject to complete divestment?

It is important to carefully consider the language used in the drafting process and to seek legal advice to ensure that the intended consequences are achieved.