When Amy grants property for the life of Charles and it reverts back to her after Charles's death, what does she hold?

When Amy grants property for the life of Charles and it reverts back to her after Charles's death, what does she hold?

• A. Life estate pur autre vie
• B. Leasehold estate
• C. Reversionary interest
• D. Freehold estate

Answer: (C)

When Amy grants property for the life of Charles, she has created a life estate. Specifically, since the property reverts back to her upon Charles's death, she retains a reversionary interest. A reversionary interest means that Amy will regain full ownership of the property once the life estate ends, which in this case, is when Charles dies. This arrangement allows Amy to retain the right to the property after a specified event, reinforcing her position as the future owner once the life estate terminates. The other options do not apply in this situation. A life estate pur autre vie would involve a life estate measured by someone else's life, rather than the life of the grantee. A leasehold estate refers to an arrangement where a tenant rents property but does not have ownership. A freehold estate signifies ownership of real property without a predetermined end date, which is not applicable here since the ownership is contingent on Charles's lifespan.

When Amy grants property for the life of Charles, she has created a life estate. Specifically, since the property reverts back to her upon Charles's death, she retains a reversionary interest. A reversionary interest means that Amy will regain full ownership of the property once the life estate ends, which in this case, is when Charles dies. This arrangement allows Amy to retain the right to the property after a specified event, reinforcing her position as the future owner once the life estate terminates.

The other options do not apply in this situation. A life estate pur autre vie would involve a life estate measured by someone else's life, rather than the life of the grantee. A leasehold estate refers to an arrangement where a tenant rents property but does not have ownership. A freehold estate signifies ownership of real property without a predetermined end date, which is not applicable here since the ownership is contingent on Charles's lifespan.