National Real Estate Practice Exam

A life estate that cannot be passed on to heirs is known as what?

1. Fee Simple Estate

2. Life Estate

3. Leasehold Estate

4. Joint Tenancy

The correct answer is: Life Estate

A life estate is a type of property ownership that lasts for the duration of an individual's life. The key characteristic of a life estate is that it is not inheritable; meaning when the owner of a life estate passes away, the property does not go to their heirs but instead reverts back to a pre-determined party, often referred to as the remainderman. This distinct feature sets life estates apart from other forms of ownership like fee simple estates, where the owner has complete control and the ability to pass the property on to heirs. In contrast, a fee simple estate allows the owner to transfer ownership through a will or intestate succession, thus enabling heirs to inherit the property. A leasehold estate involves renting or leasing property but does not confer ownership rights in the same manner as a life estate. Joint tenancy, on the other hand, is a form of property ownership that allows co-owners to inherit the property from each other, which is another distinction compared to life estates. Overall, the defining characteristic of the life estate is its termination upon the death of the life tenant and the subsequent reversion of property, confirming why it is identified as the correct answer.