We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is a Remainder Beneficiary?

Malcolm Tatum
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A remainder beneficiary is an individual or entity that is entitled to support from a trust once the interests of all prior beneficiaries have been exhausted. At this point, this remaining beneficiary has claim on any assets still left in the trust, subject to any instructions put in place by the grantor of the trust. This type of arrangement is often very effective in making sure that all assets of the estate are ultimately used in whatever manner desired by the original owner, and may sometimes involve multiple generations of beneficiaries.

Typically, a remainder beneficiary is a means of making sure that once primary beneficiaries no longer have need of the assets in the trust, the grantor can still designate what ultimately happens with those assets. For example, the grantor may set aside a residence for a child, with the stipulation that the child is free to live on the property for his or her entire life. The trust arrangement may call for the trust to see to all costs of maintenance and upkeep as well as paying property taxes. When the child passes away or voluntarily chooses to abandon the property for any reason, the provisions in the trust may call for bequeathing the property to a charity that is named as the remainder beneficiary.

The use of a remainder beneficiary arrangement can apply to just about any type of asset that is held by the trust. In addition to property, the arrangement can have to do with stocks, bonds, and any other financial holdings that are included in the arrangement. This makes it possible to ensure that cash disbursements from the trust that are made based on returns from investments can go first to a child of the grantor, then later to a grandchild once the child is deceased. A remainder beneficiary arrangement can even be used to ensure that the spouse of the grantor is able to remain in the family home for the rest of his or her life, with provisions to prevent the sale of the property and the disbursement of the proceeds until after the spouse has died.

Typically, the concept of the remainder beneficiary is to ensure that those the grantor wishes to provide with some sort of ongoing support are properly taken care of and that the holdings in the trust are ultimately disposed of in a manner that is in line with the wishes of the grantor. Arrangements of this type are subject to the laws and regulations that apply in the jurisdiction where the trust is established, making it necessary to structure the trust in accordance with those laws. Financial and legal professionals can aid in arranging the trust to include this type of provision, making it possible to ensure that any remainder beneficiary involved is provided for in due time.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.