Life Estates and Introduction to Remainders Flashcards

Life Estates and Introduction to Remainders Flashcards What is the holder of the remainder/reversion called?The holder of the remainder/reversion is called the "remainderman" or the "reversioner," depending on whether she holds a remainder or a reversion.What are the duties that a life tenant generally have?The life tenant is generally obliged not to permit the property to fall into unreasonable disrepair through inaction.Relatedly, the life tenant generally may not make alterations to the property that either (1) materially decrease its value, or (2) significantly alter the character or the use of the property that existed when the life estate was created.What happens to a life estate at the ned of the "measuring life?" At the end of the "measuring life," the property will pass to someone else, usually in fee simple absolute, leaving the former holder of the life estate with nothing.What is the obligations of the life tenant generally?Generally speaking, the life tenant must not commit "waste." What is the exception of the general rule that the obligation of the remainderman or reversioner is to leave the life tenant alone?The remainderman may sometimes enter upon, or make changes to, the property as necessary in order to protect or preserve his own future interest in the property. Many states have enlarged this right by statute. The remainderman may also sue the life tenant if the life tenant is performing his obligations in a way that threatens the value of the future interest.How do we know when to call the future interest a "remainder," and when to call it a "reversion"?It depends on precisely who holds the future interest. If it is the grantor that holds the future interest, it's a "reversion." If anybody else holds the future interest, it's a "remainder." Typically, the grantor is presumed to hold the future interest, unless the instrument of conveyance specifies otherwise.What is the holder of the life estate called? The holder of the life estate is called the "life tenant." Why may the remainderman not enter upon, possess, use, occupy, or exploit the property without the life tenant's consent?Because the life tenant has the same right of exclusive use and possession as a fee simple owner-including the right to lease out the land and receive rents and income. But there is a major exception to this rule.What is permitted for a life tenant to do ? A life tenant is permitted to make the same use of the property as an owner in fee simple could. For example, she may rent out the property to tenants, utilize any proceeds, offspring, or products of the property, use and occupy it, and so on.What are exceptions to the duty to avoid affirmative waste?The first is the "open mine" or "customary use" exception.Another exception is called the privilege of "estover." Relatedly, the life tenant may exhaust or exploit part of the

property where necessary to preserve his own interest and that of the remainderman or reversioner.When does ameliorative waste happen?Ameliorative waste involves beneficial changes that actually increase the value or usefulness of the property.

What are three kinds of "waste?"The life tenant must not commit affirmative waste, passive waste, and ameliorative waste.What forms does permissive waste take?Permissive waste takes: first, failure to perform necessary maintenance. Second, failure to pay certain regular charges that must be paid in order for the life tenant and the remainderman to keep their estates intact. However, this duty to pay for maintenance, taxes, etc. is limited to the actual or potential income that the life tenant may realize from the property.What 2 forms does affirmative waste take? Affirmative waste usually takes 2 forms: Exploitation of natural resources and destruction or removal of beneficial buildings and other structures that add value to the property.Explain the "open mine" or "customary use" exception.Unless the instrument of conveyance provides otherwise, the life tenant is generally permitted to use the property in a manner that is reasonably consistent with the way the property was used just prior to the creation of the life estate. Plus, in the future, the life tenant may make reasonable modifications to the property, in order to make it easier or more economical to conduct operations.However, the life tenant may not continue that use if it has been actively supplanted by another use before the creation of the life estate. Dormancy alone is not a supplanting use.What specific language needs to appear in the instrument of conveyance in a case that Grantor wants to give Grantee a life estate in Pinkacre, measured by the lifetime of Third Party?This type of life estate is called a life estate pur autrie vie, or estate "for the life of another." In this case, the instrument of conveyance would state that Grantor conveys Pinkacre "to Grantee, for the life of Third Party." What is a life estate according to Black's Law Dictionary?a life estate is "an estate held only for the duration of a specified person's life." How are life estates and remainders created? Life estates and remainders are often created - the holder of a larger estate, like a fee simple absolute, may decide to convey a life estate to the grantee, while retaining a reversion for herself. Alternatively, the grantor may decide to convey a remainder, and then retain a life estate for herself.How does affirmative waste happen?Affirmative waste usually comes about where the life tenant actively and willingly does something that results in a material decrease in the value of the property.How does permissive waste happen?Permissive waste involves permitting the property to lose value through mere inaction.What does a person to whom the life estate passes at the end of the measuring life hold?The person to whom the life estate passes at the end of the measuring life holds either a remainder or a reversion.Is the remainder/reversion a present interest or a future interest?The remainder/reversion is a future interest; the holder has no right of possession until the end of the measuring life.

Then, the future interest becomes a present interest, usually a fee simple absolute. The former holder of the life estate is then left with nothing.