Life Estates Flashcards
1
Q
Creation of Life Estate
A
Magic Words
- “for life” / “while the person is alive” / “for the period of natural life”
- If ambiguous, look for evidence of grantor’s intent to create interest to be limited to a life. (e.g., “living in a house” could go either way)
2
Q
Life Tenant Rights
A
- Right to rent and profits during possession
- Right to lease, sell life estate interest; may mortgage property
3
Q
Life Tenant Duties
A
- Pay taxes and interest on mortgage (up to reasonable rental value of property)
- Life tenant liable for waste.
- Some jxns: not responsible for property insurance or damage caused by 3P
4
Q
Termination of Life Estate
A
- Ends naturally when measuring life dies (life estate tenant or some other person if pur autre vie)
- Life estate can be framed as a defeasible life estate (add a condition to terminate it)
5
Q
Future Interests
A
Reversion. If possession goes to the grantor after LE, then grantor retains a reversion in fee simple absolute.
Remainder. If possession goes to a 3P after LE, then the transferee gets a remainder at present & a fee simple absolute after death of measuring life.
