What Is A Remainderman?

Remainderman Definition

A remainderman is a person left with an estate or property after paying legacies and debts. In real estate, it is someone who inherits property after the death of the owner but before the sale of the property. The remainderman usually gets whatever remains after everyone else receives their payment. 

In most cases, the remainderman is the last person to inherit something. This inheritance can be after the payment of all legacies and debts or the sale of a property. They are usually left with something after everyone else has taken their share.

Rights

The rights of a remainderman can vary depending on the situation. In most cases, they can receive whatever remains after everyone else receives their part. These gifts can include money, property, or other assets.

If the property is sold, the remainderman may be entitled to a portion of the proceeds. They may also have the right to take possession of the property after the sale finishes.

In some cases, the remainderman may claim ownership of the property if no one has bought it yet. For example, this can happen if there are no other heirs or they cannot agree with the other heirs.

Responsibilities

In most cases, they are responsible for taking care of the property until it sells or they die. These responsibilities include maintaining the property and paying any taxes or fees that may be associated with it.

If the property sells, the remainderman should pay any debts or expenses that the owner may owe on the property. However, If the property didn’t sell yet, the remainderman may be responsible for taking care of it indefinitely. It can include paying for any repairs or maintenance the property may need.

Tax Implications of Remainderman

The tax implications of a remainderman can be significant. In most cases, the remainderman is responsible for paying any taxes or fees that may be associated with the property. These implications can include paying for any repairs or maintenance required. 

If the property sells, the remainderman is responsible for paying any debts or expenses that the owner may owe on the property. However, If the property didn’t sell yet, the remainderman may be responsible for taking care of it indefinitely. Therefore, paying for any repairs or maintenance that the property may need.

Next Steps

How could this concept impact your investments? Find out and calculate your potential deductions with our charitable trust calculator. Or learn more definitions today!

About Valur

We built a platform to give everyone access to the tax and wealth-building tools of the ultra-rich like Mark Zuckerberg and Phil Knight. We make it simple and seamless for our customers to take advantage of these hard-to-access tax-advantaged structures so you can build your wealth more efficiently at less than half the cost of competitors. From picking the best strategy to taking care of all the setup and ongoing overhead, we make it easy and have helped create more than $500m in wealth for our customers.