Property OwnershipIntermediateDelaware Exam

Under Delaware law, what is a 'life estate'?

AA type of insurance covering the property owner's life
BA freehold estate that lasts only for the duration of a specified person's life, after which the property passes to the remaindermanCorrect
CAn estate plan that passes property through a trust
DSimply a leasehold estate whose fixed term happens to be set equal to the tenant's own natural life, as is typical in most transactions

Why A freehold estate that lasts only for the duration of a specified person's life, after which the property passes to the remainderman Is Correct

Answer B: A freehold estate that lasts only for the duration of a specified person's life, after which the property passes to the remainderman

A life estate is a present possessory freehold estate limited in duration to the life of a specific person (the life tenant or measuring life). When the measuring life ends, the property automatically passes to the remainderman (or reverts to the grantor as a reversion).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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