The duration of a life estate is tied to the lifetime of a specific individual, known as the life tenant. The life tenant has the right to possess and use the property during their lifetime. Upon the death of the life tenant, the property ownership either reverts back to the grantor (reversion) or is transferred to a designated third party (remainder).
A parent grants their child a life estate in a property. The child can live in the property until they die, at which point ownership transfers to the grandchild (remainder interest).
Life Estate is tested in the Property Ownership section of the real estate exam. Questions typically present a scenario and ask you to apply the concept. Here are examples of how exam questions are phrased:
A life estate is an example of:
Which of the following can the grantor of a life estate NOT do?
A hospital receives a gift of real property from an elderly couple who reserve to them- selves a life estate. The hospital is the
Practice with all 10 related questions below to build confidence in this topic area.
Associate 'life' with the duration of the estate. Remember to distinguish between 'reversion' (back to the grantor) and 'remainder' (to a third party).
Related Terms
Practice Questions
A life estate is an example of:
Which of the following can the grantor of a life estate NOT do?
A hospital receives a gift of real property from an elderly couple who reserve to them- selves a life estate. The hospital is the
Which statement is TRUE regarding a life estate?
A life estate may be granted
A life estate in Texas can be measured by:
A life estate in Illinois terminates upon:
Fee simple is all of the following EXCEPT
If Alycia deeds property to Bernice and her heirs, with the stipulation that if Bernice leaves no heirs the property will then go to Cynthia, then Cynthia now holds which type of estate?
In Pennsylvania, a life tenant:
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Frequently Asked Questions
Study This in Your State
Life Estate may have state-specific rules. Choose your state to study Property Ownership with localized content: