Reversionary Interest

What Does Reversionary Interest Mean?

Reversionary interest is a provision in a trust that allows the original owner of a property to reclaim it after transferring it to a beneficiary.

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

Insuranceopedia Explains Reversionary Interest

Reversionary interest means that the grantor of a trust retains the right to reclaim a transferred property after a certain period or upon the fulfillment of a specific condition. For example, if the grantor transfers ownership of a house to their grandparent for as long as they live, the ownership will revert to the grantor when the grandparent passes away.