Life estates and future interests | Lanbuk on the Law of Land

In simple terms

A lasts as long as a named life. What is left after it is either a reversion, back to the grantor, or a remainder, on to someone else. The hard question is whether that future gift is vested or still only contingent.

A life estate is measured by a life. "To R for life" ends when R dies and cannot be left by will. "To Dan for the life of May" is an . May is the . If Dan dies first, the right to enjoy the land until May dies passes with Dan's estate. "To John and Jane for their lives" lasts while either is alive. "To John and Jane for their joint lives" lasts only while both are alive.

In England, since 1925, a life estate can exist only in equity. In Sierra Leone it can exist at law as well as in equity. It is the typical product of a settlement. It can also arise by operation of law, where a tenant in tail special can no longer have the children the requires. The life tenant takes the rents and profits, and is limited by waste.

A reversion is what the grantor keeps when the grant does not dispose of the whole estate. Grant a life estate out of a , and the fee simple in reversion comes back when the life ends. No one has to name it. It arises by itself.

A remainder is a future gift to someone else, after a particular estate. "To A for life, remainder to B in fee simple." At common law a remainder had to follow a prior estate of freehold, it had to be created in the same instrument, and it could not cut that prior estate short. A gift that sprang up with no prior estate, or that shifted the land away from a previous taker, was void at law. Equity, and later statute, allowed those as executory interests.

A remainder is vested if the person is ascertained and there is no condition left to fulfil, other than the natural end of the prior estate. "To Barbara for life, remainder to Charlie in fee simple" gives Charlie a vested remainder, even while Barbara is alive. It is contingent if the person is not yet ascertained, or if a condition is still outstanding. "To the survivor of Barbara or Charlie", "to Barbara if she attains 21", "to Barbara if she becomes a member of the Law Society" are contingent examples.

The difference matters. A vested remainder passes on death. A contingent one may fail. Contingent remainders were also more fragile at common law if the prior estate ended before the contingency was met. Read the words. "After", "then to", and a named person, usually vest. "If", "provided", and a person still to be identified, usually do not.

Words and Latin in this note

Cestui que vie: The person whose life measures an estate pur autre vie. When that person dies, the estate ends.
Pur autre vie: 'For the life of another.' An estate measured by someone else's life, not by the life of the person who holds it.
Life estate: An estate that lasts for a life, and ends when that person dies. It cannot be left by will.
Fee simple: The fullest form of land ownership: the owner holds the land for ever and can sell, give away or leave it by will. Open the note.
Fee tail: An inheritable estate cut down to a line of descendants, from feodum talliatum, a fee that has been cut. On failure of that line the land goes back. Open the note.

Memory map

Life estates and future interests

Key points

A life estate ends with the measuring life
A reversion returns to the grantor
Vested means the person is known and no…

Key terms

Fee simple
Fee tail
Life estate
Pur autre vie

Take-home points

A life estate ends with the measuring life. In Sierra Leone it can be legal, not only equitable.
A reversion returns to the grantor. A remainder goes on to someone else.
Vested means the person is known and no condition remains. Contingent means one of those is still open.