How a Remainder Can Shorten an Earlier Estate
In property law, a remainder is a future interest that takes effect after an earlier estate ends. Normally, a remainder waits patiently for the preceding estate to run its course. But Arizona law recognizes a special type: when the remainder is tied to a condition that, if it occurs, actually terminates 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 that a property owner can set up a transfer where the first person holds the property only until a specified event occurs. When that event happens, ownership shifts automatically to the person holding the remainder. The law treats this arrangement as a conditional limitation rather than a traditional remainder.
Probability Does Not Determine Validity
One practical concern with contingent interests is whether a triggering event is realistic. Arizona removes that concern entirely.
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 the future interest is properly created, the court will not second-guess whether the condition is likely or unlikely. This gives families and estate planners flexibility to attach creative conditions to property transfers without worrying that a court will strike them down for being improbable.
