A property owner grants a life estate to their adult child with remainder to their grandchild. If the child dies before the grandchild, what happens to the property?
Correct Answer
C) The grandchild automatically receives fee simple ownership
In a life estate with remainder, the remainderman (grandchild) automatically receives fee simple title when the life tenant dies, regardless of whether the life tenant dies before or after the remainderman. The remainder interest is a future estate that becomes possessory upon termination of the life estate.
Why This Is the Correct Answer
Option C is correct because in a life estate with remainder, the remainderman (grandchild) holds a vested future interest that automatically converts to fee simple ownership when the life estate terminates. The death of the life tenant (child) ends the life estate, triggering the remainder interest. This occurs regardless of whether the life tenant dies before or after the remainderman, as the remainder interest is already vested and simply awaits possession. This principle is fundamental to common law property rights recognized across Canadian jurisdictions.
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