How is a conventional life estate created?

• A. It happens automatically when title transfers unless a fee simple is specifically claimed.
• B. A fee simple owner grants the life estate to a life tenant.
• C. It is created by judicial action.
• D. It is created by a statutory period of adverse possession.

Answer: (B)

A conventional life estate is created when the owner who holds the property in fee simple grants a life estate to a life tenant. In this arrangement, the life tenant has the right to use and enjoy the property for their lifetime, while the grantor (or someone designated in the deed) retains a future interest—either a reversion if no one else is named, or a remainder if the grant specifies another person to receive title after the life tenant’s death. The life tenant may possess and benefit from the property during their life but cannot waste or significantly deplete its value, since waste would affect the future interest. When the life tenant dies, title passes to the reversioner or the named remainder beneficiary, depending on how the grant was drafted.