Question

The grantor of a life estate names a third party to receive the title when the life tenant dies. What will the third party hold?

a. A less-than-freehold estate.
b. A third party estate.
c. A remainder estate.
d. A pass-along estate.

Answer 1

In a life estate, when the grantor names a third party to receive the title after the life tenant dies, the third party will hold a remainder estate.

Step-by-step explanation:

In a life estate where the grantor names a third party to receive the title when the life tenant dies, the third party will hold a remainder estate. A remainder estate is a future interest in land that is created at the same time and out of the same instrument as another estate and becomes possessory when the prior estate terminates. In this case, the third party will have the right to possess and enjoy the property after the death of the life tenant.