Also known as: subject to defeasance · defeasible · defeasance
Written by attorneys · grounded in primary & secondary sources — see below
A future interest that has vested in a designated person but remains liable to complete termination upon the happening of a stated condition. The interest carries all incidents of ownership until the condition occurs and the divestment takes effect.
Stella Shapiro conveyed her ranch to her son Simon for life, remainder to his daughter Sabrina if she never sells the property during her lifetime. Sabrina received the remainder immediately upon the conveyance. When Sabrina later sold the ranch to a third party, the condition occurred and her interest ended entirely, passing the property under the alternative disposition in the deed.
Solomon Silver created a trust directing income to his sister for life and the principal at her death to his son Sterling if Sterling survived her. Sterling's interest vested at creation. When Sterling predeceased the sister, the condition of survival failed and his remainder terminated completely, so the principal passed instead under the residuary clause of the trust instrument.
Select any source to read its text and confirm it supports the definition.
A vested remainder subject to complete defeasance is presently owned by an ascertained person even though it may later be cut off entirely by a condition. A contingent remainder is not yet vested because either the taker is unascertained or the condition precedent to vesting has not occurred.
Supporting sources
The interest ends automatically and passes to the next succeeding interest holder without any further action by the grantor or the holder of the future interest.
Supporting sources
Yes. The holder possesses a presently vested interest that carries the ordinary powers of ownership, including the ability to sell or mortgage the interest, subject only to the risk that the condition may later terminate it.
Supporting sources
…of the grantor. There is no doubt that a gift to A for life with remainder to A’s heirs, gives to such heirs a vested, though defeasible, estate ( Moore v. Littel , 41 N.Y. 66; Clowe v. Seavey , 208 N.Y. 496, 502). But here the question is not whether a remainder is contingent or vested. The question is whether there is any…