What is a life estate?

A life estate is defined as an interest in property that is limited to the duration of an individual's life, specifically the life of the holder of that estate. This means that the individual who holds a life estate has the right to use and benefit from the property for as long as they are alive, but their interest in the property terminates upon their death. At that point, the property may revert back to the original owner or be passed on to a designated third party, known as the remainderman.

In contrast, options that refer to an interest lasting indefinitely are describing fee simple ownership, which allows a property to be owned perpetually without a defined ending. Joint ownership among multiple parties pertains to various forms of co-ownership, such as joint tenancy or tenancy in common, which does not specifically relate to the lifespan of an individual. Finally, a temporary rental agreement is a leasehold interest and does not imply ownership at all. Therefore, the essence of a life estate is uniquely tied to the life of its owner, making the correct option the one that accurately reflects this definition.