Remainderman is a term used within a Life Estate Deed with Power to convey, also termed a “Lady Bird Deed”. The life estate with power to convey is created by specific language within the deed. The recital will generally be displayed within the body of the deed.
Creation by Deed:
Grantor: Mr. “A”, a single man
Conveys to Grantee: A Life Estate in favor of Mr. “A”, with an absolute power to convey, sell, mortgage, lease, or otherwise dispose of the property described above in fee simple, during his lifetime, without joinder by the remainderman, if the Grantee has not previously conveyed the property prior to his death the property is conveyed to Mrs. “D”.
The intent of the life estate with power to convey is that it acts as an estate planning vehicle in which the life tenant can leave the property to his intended Remainderman upon his death, while simultaneously affording the life tenant complete freedom to transfer or finance a fee simple interest.
NOTE: The interest of Mrs. “D” is that of a contingent remainder. Why?
ANSWER: There is a condition precedent to Mrs. “D” taking title. That condition is that Mr. “A” must die without having disposed of his interest in the land. Upon his death, without the property having been conveyed, the interest of Mrs. “D” would convert to a fee simple absolute.
If Mr. “A” is still living – he will execute the conveyance deed exercising his right to disposition of the property pursuant to the life estate deed.
Get Legal Advice
By consulting an experienced real estate attorney, you can ensure your rights – and those of your loved ones are fully protected. Make sure you consult with a lawyer to determine what option is right for you. Some states have additional laws or restrictions on the way you may hold title, so getting professional advice in this area is imperative.