What type of trust gift is a gift of a remainder interest?

A gift of a remainder interest is classified as a future interest gift. This concept is rooted in the understanding of how property interests are transferred and enjoyed over time. When a remainder interest is given, it means that the recipient does not have the right to access or control the asset immediately—instead, they must wait until a specified event occurs, often the death of the current owner or the termination of a prior interest, such as a life estate.

This distinguishes remainder interests from present interest gifts, where the recipient gains immediate enjoyment or use of the property. Because the enjoyment of a remainder interest is deferred to a future date, it is categorized as a future interest gift. Understanding this helps clarify how various types of gift interests are structured in estate planning and the implications they have for both the donor and the recipient.