Remainderman (Trust)

The “remainderman” is the man or woman who receives the body of the trust (the trust corpus) upon termination of the trust.

The remainderman interest in a trust is a non-present interest. They have no “economic enjoyment” of the trust property or income; i.e no ability to use, borrow against, or dispose of. The remainderman receives the entirety of whatever is left in the trust upon termination. Upon termination of the trust, whether or not the receipt of trust property by the remainderman is a taxable event varies by country.

Mrs. Client’s grandfather set up a non-grantor trust when she was a baby, after having sold his printing business to Coca Cola. The trust paid for the health, education, maintenance and support of  his sons (her father and x2 uncles) throughout their lifetimes. They were the income beneficiaries of the trust. When there were no sons left alive, the trust would dissolve, and the trust corpus would be paid to his granddaughter, Mrs. Client- the trust remainderman.