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An interest in possession trust is a trust in which at least one beneficiary has the right to receive the income generated by the trust (if trust funds are invested) or the right to enjoy the trust assets for the present time in another way.

Mathematically, the value of a remainder interest is found by subtracting the present value of the prior interest from the entire fair market value of the property.

For example, A grants her brother B the property deed for life, and upon B's death, the land deed to C, B's son, or C's offspring if he does not live. C holds a remainder, and his offspring will inherit a "contingent remainder" if C dies before the title passes.

For example, Doreen dies and in her will leaves her husband, Alf, a life interest in Rose Cottage. The will provides that, on Alf's death, Rose Cottage is to pass to Doreen's son, Cedric, outright. Cedric has a remainder interest in Rose cottage - taking possession only when Alf dies.

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