Reversionary Interest

What Does Reversionary Interest Mean?

Reversionary interest is a condition in a trust where the original owner of a property can claim it back after transferring it to a beneficiary.

It is also known as reversion to settlor or revertor to settlor.

Insuranceopedia Explains Reversionary Interest

Reversionary interest simply means that the grantor of the trust has an interest in getting back a transferred property after some time or upon a certain condition. For example, if the grantor has transferred ownership of a house to their grandparent for as long as they live, ownership will revert to the grantor when their grandparent dies.