Property Ownership

What is a 'life estate' in Pennsylvania real property law?

AA 99-year ground lease commonly used for commercial property development
BA freehold estate lasting the lifetime of a specified person, after which ownership passes to the remainderman✓ Correct
CA property held in a revocable living trust for estate planning purposes
DAn agricultural property enrolled in Pennsylvania's Clean and Green program for tax benefits

Explanation

A life estate is a freehold ownership interest in real property measured by the life of a specified person — typically the grantor or another named individual. The life tenant has the right to possess, use, and enjoy the property during the measuring life but cannot convey greater rights than they hold (no fee simple conveyance). Upon the measuring life's death, ownership passes automatically to the remainderman named in the deed or reverts to the grantor. Life estates are used in Pennsylvania estate planning and Medicaid planning.

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