Here is a working definition of the life estate: According to Prof. Moynihan, a "life estate" is "an estate which is not terminable at any fixed or computable period and has its duration measured by the life or lives of one or more persons."
No magic words are necessary so long as the intention to create a life estate is expressed.
Thus, Grutz conveys “To John Walton for his life.”
Walton has a life estate measured by his own life. The life estate terminates on John walton’s death. What happens to Blackacre?
The property reverts to Grutz who retained a Reversion in Fee Simple Absolute when he created the life estate.
Alternatively, a grantor may create a life estate in a person for the life of another, i.e. an estate pur autre vie. See chart on p. 253.
Thus, Grutz conveys Blackacre “To John Walton for the life of Lady Gaga.”
Walton has a life estate pur autre vie, one which will terminate with the death of Gaga.
What happens to Blackacre if Walton dies and Lady Gaga is still alive?
May Walton provide for the unexpired portion of his life estate in his will? If he dies intestate will it pass to his heirs?
Yes! Even though life estates were not inheritable at common law, today an unexpired life estate may pass to the owner’s successors either by will or intestate distribution.
Notice also that a life estate is freely alienable by deed.
Suppose Grutz conveys "to John Walton for his life." What happens when Walton conveys his life estate to Katy Perry? What does Katy Perry have?
A life estate can also be created in a way that it will be cut short upon the happening of a stated event. Suppose Grutz conveys to the widow of his friend, John Q Public:
“To Mrs. Public for her life or until she remarries.”
What does Mrs. Public have?
She has a life estate determinable: i.e. the life estate will terminate upon her death unless she remarries (in which case it will terminate upon her remarriage).
Okay, let’s suppose Grutz conveys “To Duncan for his life.” What happens to the property when I die?
Assuming Grutz had a fee simple absolute, when I die the property reverts to Grutz and he has his fee simple absolute back again.
What the Grantor does not convey, he retains. So the state of the title is Duncan life estate, Grutz reversion in fee simple absolute.
But suppose Grutz makes the following conveyance: “To Duncan for life, then to Schutz and his heirs.”
What is the state of the title now?
Duncan has a life estate
Schutz has a remainder in fee simple absolute
Upon my death, Schutz’s future interest (his remainder) becomes possessory and Schutz has a Fee Simple Absolute.
What if Schutz dies before me?
Now his remainder in fee simple absolute will pass in accordance with his will or to his heirs if he dies intestate.
So, if Schutz’s will left all his property to Dean Moberly, upon Schutz’s death Moberly becomes the owner of Schutz’s remainder in fee simple absolute.
