Remainder Legal Meaning and Definition

Here is a simplified definition of the legal term Remainder.

Remainder (n): This is a legal term that refers to the future interest someone will have in a property or asset. This future interest comes into effect only after a present interest (held by another party) ends or expires. For example, if a person sets up a trust for another person (like their aging mother) but stipulates that the property returns to them after that person's death, they are said to have a 'remainder'. In other words, they take up full ownership of the property again when the existing interest finishes.