Discussion Question

How do you feel about the ability to transfer a temporary ownership in land for an individuals life? Should that right be limited by requiring that the life estate be measured by the life of the holder of the interest? Are there any economic utility arguments for or against the government recognizing life estates?

Practice Question

Linda works as a tenant on the farm of Eric, a local aristocrat. Upon Erics death, he grants Linda the right to live and farm the land for the rest of her life. At the end of her life, however, the land will transfer back to Eric or his children. If Eric is not alive and he does not have any children, the land will transfer to Gladys, Eric's cousin. What interests do Linda, Eric, and Gladys have in the land?

• A life estate refers to property that is owned by an individual only through the duration of their lifetime. A life estate is restrictive in that it prevents the beneficiary from selling the property that produces the income before the beneficiary's death. Under the life estate, the property owner or the grantor transfers legal ownership to another person, or the life tenant. Typically, the deed will state that the occupant of the property is allowed to use it for the duration of their life. In the practice question, Linda's interest in the land is to only possess and use it during her lifetime; though she cannot sell or dispose of it. Eric's rights in the land is a reversion interest (in the event Linda passes away). If Eric predeceases Linda, Gladys as a remainder interest in the property.