What is the type of interest that passes to another party upon the death of the person upon whom the life estate is based?

The type of interest that passes to another party upon the death of the individual who holds the life estate is known as a remainder interest. In property law, a life estate is an interest in property that lasts for the lifetime of a specified individual. When that individual passes away, what happens next hinges on the type of future interest established in the property.

If the property’s title specifies that a third party will receive the property after the death of the life tenant, this third party has a remainder interest. This means that the remainder interest is a future interest that becomes possessory when the life estate ends. It is an acquired right to the property that will vest upon the conclusion of the life estate, allowing for a smooth transition of ownership without reversion to the original grantor. This is distinct from reversionary interest, where ownership would revert back to the grantor or their heirs rather than passing to another party. Hence, the answer accurately reflects this aspect of life estates and their subsequent succession.