Maine Real Estate License Practice Exam

In a life estate granted by his aunt, what type of interest does Russell have after her passing?

1. Estate for Years

2. Reversionary

3. Remainder

4. Fee simple defeasible with special limitations

The correct answer is: Remainder

In a life estate, the individual (in this case, Russell) holds an interest in the property for the duration of the life tenant's life. When the life tenant (Russell's aunt) passes away, the interest in the property depends on the terms of the life estate arrangement. If a remainder is created, it means that after the life estate terminates, the remaining interest in the property will pass to another party or revert to the original grantor. In this scenario, if the conditions of the life estate specify that Russell is to receive the property after his aunt's death, he holds a remainder interest. This is a future interest that will become possessory when the life estate ends. In contrast, a reversionary interest involves the property returning to the original grantor after the life estate concludes, which would not apply to Russell in this case if he is explicitly designated as the recipient after his aunt's passing. The other options do not align with the basic structure of a life estate, as an estate for years refers to a specific leasehold arrangement with a predetermined duration, and fee simple defeasible with special limitations involves different conditions attached to property ownership that don’t pertain directly to life estates. Thus, the designation as a remainder