Kovats Real Estate School Practice Test

A life estate with a conveyance where the fee at the end goes to someone other than the grantor is called what?

1. Life estate with reversion

2. Life estate with limitation

3. Life estate with remainder

4. Life estate with conditions

The correct answer is: Life estate with remainder

A life estate with a conveyance where the fee at the end goes to someone other than the grantor is known as a life estate with remainder. In this arrangement, the individual who holds the life estate has the right to use and enjoy the property for the duration of their life. Once they pass away or the estate terminates, the property will then transfer to the designated remainder beneficiary, who is distinct from the original grantor. This type of estate allows for clear planning of property transfer after the life tenant's death, providing certainty and a predetermined path of ownership. Remainders can be vested, meaning the remainderman has a present interest in the property that will become possessory upon the termination of the life estate, or contingent, depending on the occurrence of a certain condition. Understanding life estates and remainders is essential in estate planning and real property law, assisting in effectively managing and transferring property interests.