The owner of a life estate may sell her interests.

The owner of a life estate may sell her interests.

• A. Not allowed
• B. Only with remainder man consents
• C. True
• D. False

Answer: (C)

The life estate holder has a present, possessory interest that lasts for the holder’s life, with a future interest reserved to the remainderman. Because the life tenant owns only that present interest, she can transfer it. A sale of the life estate conveys the right to possess and use the property for the remainder of her life to the buyer, but does not transfer the future interest to the remainder; that future interest remains with the remainderman and will vest when the life tenant dies. The sale does not change when the property will pass to the remainderman, it only changes who holds the life estate during the life tenant’s lifetime. The life tenant must continue to meet obligations like taxes, insurance, and maintenance, and the buyer who acquires the life estate steps into those rights and duties for the duration of the life tenant’s life. So the statement is true: the owner of a life estate may sell her interests.

The life estate holder has a present, possessory interest that lasts for the holder’s life, with a future interest reserved to the remainderman. Because the life tenant owns only that present interest, she can transfer it. A sale of the life estate conveys the right to possess and use the property for the remainder of her life to the buyer, but does not transfer the future interest to the remainder; that future interest remains with the remainderman and will vest when the life tenant dies. The sale does not change when the property will pass to the remainderman, it only changes who holds the life estate during the life tenant’s lifetime. The life tenant must continue to meet obligations like taxes, insurance, and maintenance, and the buyer who acquires the life estate steps into those rights and duties for the duration of the life tenant’s life. So the statement is true: the owner of a life estate may sell her interests.