A hospital receives a gift of real property from an elderly couple who reserve to them- selves a life estate. The hospital is the
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Review the question and all answer choices
grantor.
The hospital is not the grantor. The grantor is the party who transfers property rights to another person. In this case, the elderly couple are the grantors as they are transferring the property, not the hospital.
remainderman.
reversionary party.
The hospital is not the reversionary party. A reversionary interest occurs when the grantor retains the property after granting it to another party. Here, the elderly couple granted a life estate to themselves, not the hospital.
donor.
The hospital is not the donor. The donor is the party who makes a gift. While the hospital received a gift, it is the donee (recipient), not the donor ( giver).
Why is this correct?
The hospital is the remainderman because it receives the property after the life estate terminates. A remainderman holds a future interest that becomes possessory once the prior estate (in this case, the life estate) ends. This is the precise legal relationship between the hospital and the property in this scenario.
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