Bob Hogue Sales Associate Practice Exam 2025 – Your All-In-One Guide to Exam Success!

Question: 1 / 750

What happens to a life estate once the individual holding it passes away?

It is sold to the highest bidder

It reverts to the original grantor or a third party

When the individual holding a life estate passes away, the life estate ceases to exist and reverts to the original grantor or a designated third party, as stipulated in the terms of the estate. This mechanism ensures that the property does not remain in limbo but is passed along to the next party as intended by the original grantor. This reversion is part of the structure of a life estate, which is inherently tied to the duration of the life of the holder.

In instances where the life estate was established with a remainder interest, the property would then be transferred to that designated party instead. It is the nature of life estates to be temporary and dependent on the life of the individual, ensuring clarity in property ownership after the life of the individual has ended.

Get further explanation with Examzify DeepDiveBeta

It becomes a fee simple estate

It remains unchanged

Next Question

Report this question

Download Bob Hogue Sales Associate Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy