Definition - What does Vested Remainder mean?
A vested remainder is a legal right to become the official owner of real property after its current lease or ownership concludes. In other words, a vested remainder is the equivalent of a property title right that is only applicable in the future. So, people often use vested remainders to pass on property to beneficiaries in wills.
Justipedia explains Vested Remainder
Vested remainders are commonly used when property cannot be passed down immediately, or when a person does not want to pass down the property until a later date. For example, a grandfather may want to pass along real property to his grandson. However, he may have given farming rights to the property to a farmer for 10 years. So, the grandfather may use a vested remainder to give his grandson the absolute rights to the property in 10 years' time. This would allow the farmer to see his lease through and would free up the land afterwards.