In a life estate, what occurs when the owner dies?

In a life estate, when the owner, also known as the life tenant, dies, the property typically reverts back to the original owner or their heirs. This is known as the “reversionary interest.” The life estate grants the life tenant the right to use and enjoy the property during their lifetime, but does not allow them to pass ownership of the property to their heirs. Instead, upon the death of the life tenant, the property automatically returns to the original grantor, or to a designated party if a remainder interest was established at the outset of the life estate. This feature ensures that the property does not become part of the decedent's estate for distribution, but rather goes back to its original intended party.

Other alternatives, such as selling the property, dividing it among heirs, or donating it to charity, do not apply in the case of a life estate because of the legal nature of the arrangement, which specifies that ownership and usage rights are temporarily granted and revert upon death.