For example, Mr. Jones no longer lives in the family home

Property Ownership 3 Flashcards In a life estate pur autre vie, the duration of the life estate is based on the _____.life of a third party Ownership of a life estate in reversion reverts to the _____.grantor When a life estate is granted, the grantor's interest in the property is a _____ estate.Fee For example, Mr. Jones no longer lives in the family home which he inherited from his father. He grants a life estate pur autre vie for this home to his nephew, as long as his nephew's father (Mr. Jones' brother Bill) is alive.When Bill dies, his son will inherit Bill's house and will no longer need to live in his uncle's (Mr. Jones') house, which will then revert to Mr. Jones.It was pointed out earlier that a life estate is usually not inheritable. However, a life estate pur autre vie is the exception to this rule.A life estate pur autre vie is inheritable only if the life tenant dies before the third party on whose life the estate is based.In that case, the life tenant may pass the life estate to an heir. The life estate will be owned by that heir until the death of the third party on whose life the life estate is based. On the death of the third party, the life estate reverts to the grantor, regardless of whether it is owned by the original life tenant or an heir of that person.Voluntary life estates are created by a voluntary act of the grantor. All the life estates presented so far are voluntary

life estates.There are two types of voluntary life estates:

Life estate in reversion - one in which ownership of the fee estate reverts to the GRANTOR or his/her heirs upon the death of the life tenant.Life estate in remainder - one in which ownership of the fee estate reverts to a third party upon the death of the life tenant. The third party named to receive the fee estate is called the REMAINDERMAN.

There are two general types of fee estates: fee simplequalified fee

The most common form of qualified fee estate is called a_____ fee simple determinable estate.A fee estate which is subject to limitations other than the government's rights is called a _____ estate.Qualified Fee In a regular life estate, the duration of the estate is based on the _____.life of the grantee A fee estate which will terminate if a condition stated in the deed comes into being or is terminated is called a _____ estate.fee simple determinable The most important distinguishing feature of a fee estate is that it is _____.inheritable Dower - the wife's right to receive, upon the death of her husband, a share of all property held or owned by the husband during the marriage.Curtesy - the husband's interest in property owned by his wife at the time of her death.Homestead protection - provides a life estate to a

widow or widower. (NOTE: This is not the same thing as a

homestead tax exemption.) A wife's right to receive a share of her husband's property upon his death is called a _____ estate.

Some additional characteristics of life estates: A life estate originates from a fee estate and returns to fee status upon termination.In the previous example, John had fee simple title to the property conveyed to his mother as a life estate.Voluntary life estates arise from voluntary acts of the grantor.In the previous example, John voluntarily chose to create the life estate for his mother.The life tenant (John's mother) has the right to sell, mortgage, or otherwise convey the LIFE ESTATE, but not the fee estate on which it is based (which reverts to John on her death).A fee simple estate has three primary characteristics:It is the least restricted form of ownership.It is limited only by the government's rights of eminent domain, taxation, police power, and escheat.It is an indefeasible estate - It cannot be defeated (overcome) by another individual against the owner's will under any circumstances.An indefeasible fee estate is known as a _____ estate.fee simple An estate which is limited only by the government's rights is called a _____ estate.fee simple A person who holds a life estate is known as a _____.life tenant A life estate is one type of _____ estate. Freehold A special type of life estate is known as a life estate pur autre vie.The term "pur autre vie" is a French term which means "for another's life."It is pronounced "poor otra vee." A life estate pur autre vie is based on the lifetime of a third party.A regular life estate is _____.not inheritable A freehold estate which is inheritable is a _____ estate.fee Jack grants an estate in land to Martha with the stipulation that ownership reverts to him on Martha's death. Martha owns _____.life estate CurtesyThe provision of a life estate to a widow or widower in some states is called _____.A fee simple determinable estate is one which will terminate if a condition stated in the deed comes into being or is terminated.For example, Mrs. Black gave her property to a charity organization "for as long as it is used for housing for the elderly."The estate owned by the charity is a "fee simple determinable."If the property is used for anything other than housing for the elderly, the title to the property reverts to Mrs. Black or her heirs.A fee estate is one type of _____ estate. freehold A fee simple estate is the most common type of estate in real property.The ownership of most of the homes that we live in is in the form of a fee simple estate.Mr. Smith donates a parcel of land to the city for "so long as" it is used as a public park.If the city uses it for a park, it has all the rights of ownership, subject only to the four rights of government.If the city uses it for something other than a park, ownership reverts back to Mr. Smith.

In this example:The city owns a qualified fee estate since

its ownership is limited by the requirement that it be used for a park.The city's qualified fee estate is defeasible, because it reverts back to Mr. Smith if not used for a public park.An estate held for the duration of someone's life is called a _____ estate.life

The least restricted form of ownership is a _____ estate.fee simple A life tenant can sell, mortgage, or otherwise convey

_____.

life estate

EXAMPLE of a life estate:John owns the house next door to him which he has been

renting out. When his father dies, he wants his mother to live in this house. Rather than rent the house to her, he grants her a life estate in the property. She then owns the property for the rest of her life. When she dies, ownership reverts to John or his heirs.The person who holds the life estate, in this case John's mother, is called the life tenant.John's mother, as the life tenant, must pay the property taxes as long as she holds the life estate.Ownership of a life estate in remainder reverts to the

_____.

Remainderman Another name for a qualified fee estate is a(n) _____ estate.defeasible fee In some states, some life estates are created NOT by voluntary action, but by law.Life estates created by law are called STATUTORY life estates.

There are three types of statutory estates:

A fee estate has two primary characteristics: It is held for a lifetime or longer.It is inheritable (can be willed to heirs).A qualified fee estate also has three primary characteristicsIt is a more restricted form of ownership than fee simple.In addition to the government's rights, the qualified fee estate is also restricted by some additional limitations. These limitations are usually imposed by the person creating the qualified fee estate. (Examples will follow.)It is defeasible. It can be defeated (overcome) if some condition is not met or maintained. Because of this, they are sometimes called DEFEASIBLE fee estates.A life estate also has two primary characteristics:It is held for a lifetime (but not longer).It is not inheritable (cannot be willed to heirs).dowerA husband's interest in property owned by his wife at the time of her death is called a _____ estate.All life estates originate from and return to a _____ estate.fee The main type of qualified fee estate is called a _____ estate.fee simple determinable A freehold estate which is not normally inheritable is called a _____ estate.life A life estate pur autre vie is _____.inheritable Carol conveyed her property to Mary for so long as it was used only as a single-family residence. This is an example of a(n) _____ estate.fee simple determinable