What defines a remainder estate?

A remainder estate is specifically defined as one that is created when the current owner of the property (the grantor) conveys a lesser estate to one party while designating another party, known as the remainderman, who will receive full ownership of the property upon the termination of the lesser estate. This arrangement allows for a clear transition of ownership once the terms of the lesser estate have been fulfilled.

In this context, the other definitions provided do not capture the essence of a remainder estate. Retaining an estate does not align with the concept of a remainder because it suggests that the grantor maintains full control without passing any interest to another party. A lease agreement involves temporary possession without transfer of ownership, which is different from a remainder estate. Lastly, division among multiple owners refers to shared ownership rather than a definitive passing of ownership from one party to another, which is what defines a remainder estate.