The purpose of estate tax planning is to maximize the assets you pass on to future generations by minimizing gift and estate taxes. Estate-tax strategies revolve around the use of irrevocable trusts. This article discusses the most common types of irrevocable trusts that are used to minimize gift and estate […]
A remainder is a number left over after a division problem is solved. In division, the number we are dividing is called the divisor. The answer to a division problem is called the quotient.
For example, in the problem 21 ÷ 3 = 7, 21 is the dividend, 3 is the divisor, and 7
When a division problem does not have a remainder, we say an answer is a whole number.
When you divide one number by another number, the answer is called a quotient. But sometimes, a number is still left over, called the remainder.
For example, if you divide 14 by 3, the answer is four, but there are still two left over. That leftover 2 is the remainder.
Another way to think of it: The remainder left after you finished the division.
Here are some more examples of remainders:
– 9 divided by 4 equals 2 with a remainder of 1
– 100 divided by 7 equals 14 with a remainder of 2
– 15 divided 20 equals 3
In real estate, a remainder is the portion of a property left after selling a particular section or interest in the property. For example, if you sell a house with a yard, and the buyer only wants to purchase the home and not the yard, then the seller would keep the yard and would be said to have the remainder of the property.
When a person deeds property to another, they may choose to reserve a “remainder in fee,” which gives them the right to re-purchase the property later. This fee ensures that the person initially gifted the property has some ownership, even if they no longer live on the land or wish to use it for themselves. The remainder fee can also help ensure that the property never sells to someone the original gifter doesn’t want to own.
Are you wondering how to take the most advantage of your sold assets? Calculate your potential return on investment when selling appreciating assets with our calculator. Or access our previous definitions to get a better idea!
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