A hospital receives a gift of real property from an elderly couple who reserve to them- selves a life estate. The hospital is the
Question & Answer
Review the question and all answer choices
grantor.
The grantor is the party who originally owned and conveyed the property — in this case, that is the elderly couple, not the hospital, since the couple initiated the gift and reserved the life estate for themselves.
remainderman.
reversionary party.
A reversionary party is the original grantor who retains the right to get the property back when the estate ends; reversion occurs only when no third party is designated to receive the property, which is not the case here since the hospital is named as the recipient.
donor.
The donor is the party making the gift, which is the elderly couple who are gifting the property to the hospital — the hospital is the recipient (donee/remainderman), not the donor.
Why is this correct?
The hospital is correctly identified as the remainderman because it holds a remainder interest — a future possessory right that will become present ownership when the elderly couple's life estate terminates upon their deaths. The hospital did not convey the property (ruling out grantor/donor) and has no reversionary interest because the property is not returning to the original grantor. This is a classic 'third-party remainder' structure where ownership flows forward to a new party rather than reverting back.
Continue Learning
Explore this topic in different formats
More Property Ownership Videos
Continue learning with related video lessons
The rights of ownership, including the right to use, possess, enjoy, and dispose of a thing in any legal way so as to exclude everyone else without rights from interfering, are called
3:10 • 0 views
Arizona is a community property state. This means:
2:25 • 0 views
An owner sold a parcel of real estate to a buyer with the stipulation that the buyer was not allowed to sell alcohol from the prem- ises. The buyer sold the property 10 years later to a buyer who converted the build- ing into a convenience store that sold beer. Should the owner or owner’s heirs claim a right of re-entry, what would be the basis for the lawsuit?
2:46 • 0 views
The highest form of property ownership in the United States is:
2:35 • 0 views
In a deed, the clause that defines the nature of the estate being granted is the:
2:45 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.