How a Remainder Can Shorten an Earlier Estate
A remainder is a future interest in property. It takes effect after an earlier estate ends. Normally, a remainder waits for the earlier estate to run its course.
Arizona law allows a special type. In this case, the remainder is tied to a condition. If that condition occurs, it ends the earlier estate ahead of schedule.
A remainder may be limited on a contingency which, if it should happen, will operate to abridge or determine the precedent estate. Such a remainder shall be construed a conditional limitation and shall have effect as such.
A.R.S. § 33-227(A)This means the property owner can set up a transfer. The first person holds the property only until a specific event occurs. When that event happens, ownership shifts to the remainder holder.
In other words, the law treats this as a conditional limitation. It is not the same as a traditional remainder.
Probability Does Not Determine Validity
Some people worry about whether a trigger event is realistic. Arizona removes that concern.
No future estate, otherwise valid, shall be void on the ground of the probability or improbability of the contingency upon which it is limited to take effect.
A.R.S. § 33-227(B)If someone properly creates a future interest, courts will not question whether the condition is likely. This means families and estate planners can attach creative conditions to property transfers. Courts will not strike them down for being improbable.