Which statement correctly distinguishes a vested remainder from a contingent remainder?

• A. A vested remainder is only a present interest, while a contingent is future.
• B. A vested remainder is certain to become possessory on termination, while a contingent remainder depends on a condition or is held by an unascertained person.
• C. A vested remainder can never be transferred, while a contingent remainder can.
• D. A vested remainder requires the life of the grantor, while contingent does not.

Answer: (B)

The key distinction here is certainty of vesting and what controls it. A vested remainder is a future interest created for an identifiable person and not subject to any condition precedent; when the prior estate ends, that person is guaranteed to take possession. A contingent remainder, by contrast, depends on a condition being satisfied or on the holder being an as-yet-unascertained person, so it may never vest if the condition isn’t met or the person can’t be identified.

So the correct idea is that a vested remainder is certain to become possessory on termination of the preceding estate, while a contingent remainder depends on a condition or on an unascertained person.