Which statement is TRUE regarding a life estate?
Question & Answer
Review the question and all answer choices
It must be measured by the life of one
A life estate is not limited to being measured by one life. It can be created to last for the life of one person, multiple persons (joint life estate), or even the life of someone other than the holder (measuring life estate).
Because it is based on life, it may not be
Life estates can be sold or transferred, though the transferee only gets the remaining duration of the original life estate. They are not prohibited from being transferred, just limited in their duration.
It may be created by will or deed.
It requires that the holder make principal
Life tenants have no obligation to make principal payments. They are entitled to use the property and receive income (like rents) during their lifetime, but they cannot waste the property or commit waste.
Why is this correct?
Life estates can be created by will or deed, making option C correct. This is a fundamental characteristic of life estates, allowing them to be established either during the grantor's lifetime through a deed or after death through a will.
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