The remainder interest is the interest that goes to the beneficiaries.

• A. Remainder interest
• B. Income-producing assets
• C. Charitable remainder annuity trust
• D. Indicia of ownership

Answer: (A)

The main idea being tested is that a remainder is a future interest in property that becomes possessory after a prior estate ends. In a conveyance like “to A for life, then to B,” A has a life estate, and B holds the remainder. When A dies, the life estate ends and the property passes to B—the remainder interest vests as the beneficiary’s future-right to possession. This is exactly why the remainder interest is the interest that goes to the beneficiaries.

The other options aren’t the concept here: income-producing assets describe assets themselves, not a future interest; a charitable remainder annuity trust is a specific trust arrangement, not the general notion of a remainder; indicia of ownership are signs of ownership, not a future interest in the property.