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Almost all deeds creating a life estate will also name a remainderman?the person or persons who get the property when the life tenant dies. Life estates are often used to provide for another person's well-being, without granting ownership of the relevant property.
For example, A grants her brother B the property deed for life, and upon B's death, the land deed to C, B's son, or C's offspring if he does not live. C holds a remainder, and his offspring will inherit a "contingent remainder" if C dies before the title passes.
A remainder interest is the right to use, possess, or enjoy property when the prior interest (term or life) ends. Mathematically, the value of a remainder interest is found by subtracting the present value of the prior interest from the entire fair market value of the property.
For example, a deceased homeowner may bequeath the family home in a life estate to their spouse, but name their children as remaindermen. This arrangement ensures the spouse will continue to have a home, and that it will ultimately be inherited by their children.
A remainder interest in property is the value or portion of the property inherited by an individual after the death of another heir. The remainder interest can be created by a will, a trust agreement, or a deed. In turn, a remainderman is a person who holds a remainder interest in property.