The interest that the grantor retains.

• A. Remainder interest
• B. Retained interest
• C. Indicia of ownership
• D. Income-producing assets

Answer: (B)

In property and estate planning terms, the interest the grantor retains is the ongoing right the grantor keeps after making a transfer. This could be something like a life estate or the right to income from the property for a certain period. It describes the portion of the property that remains in the grantor’s control or benefit after the conveyance.

A remainder interest, by contrast, is a future interest that takes effect after the prior estate ends and is usually held by someone other than the grantor. Indicia of ownership aren’t a specific legal interest, just signs of ownership, and income-producing assets describe the nature of the assets rather than the particular retained right. Thus, the retained interest best captures the grantor’s ongoing right in the transferred property.