Conventional life estates

As soon as the person, on whose life the life estate is based, has died, the life estate ends. However, as explained below, that person doesn't have to be the life tenant.

  • Ordinary life estates. When the life estate is based on the life of the owner of the life tenant, it is called an ordinary life estate. When the life tenant dies, the real property either reverts back to the grantor and heirs (reversionary interest) or to a third party (remainder interest).
  • Pur autre vie. This French term meaning "for the life of another," is self-explanatory. This life estate is based on the life of someone other than the life tenant. The life estate thus continues as long as that "other person" is alive. When that other person dies, the property either reverts to the grantor (or grantor's heir) or to a third party (remainder interest).

A common example of an ordinary life estate is when a man dies and leaves his estate to his wife in a life estate that stipulates a remainder interest to their children. When the wife eventually dies, the life estate transfers all interests to their children. At this point, their children would probably own the property with a fee simple absolute estate.

The Real Estate Profits

The Real Estate Profits

If You Are Someone Who Doesn't Want To Take A Share Of The Real Estate Pie, This Is Not For You. Do You Feel The Real Estate Market Is Where Your Heart Lies? Always Wanted To Be A Part Of It. But Were Super Confused And Didn't Know Where To Even Start? Looking For Someone To Hold Your Hand And Guide You? Fret Not.

Get My Free Ebook


Responses

  • Tanta
    When the life tenant in a conventional life estate dies?
    8 months ago
  • NICOLE
    What is an example of a conventional real estate?
    6 months ago

Post a comment