Property Ownership

A Minnesota homeowner grants their adult child a life estate in the family home while the parent retains a reversionary interest. When the child dies, the property:

AGoes to the child's heirs
BReturns to the parent (or the parent's estate) who holds the reversion✓ Correct
CBecomes property of the state of Minnesota
DIs transferred to the nearest living relative of the child

Explanation

When a life estate ends (upon the death of the life tenant), the property reverts to the grantor (parent) if the grantor retained a reversionary interest, or passes to a named remainderman. Here, with a reversionary interest, the property returns to the parent or the parent's estate. Life estates are commonly used in Minnesota estate planning.

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