Life Estate Grant With Reversion
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FAQ
In General. A "reversion" is a future estate created by operation of law and which is to take effect in possession in favor of a lessor, transferor, grantor, or his heirs, distributees, devisees, or legatees, after a precedent particular estate which has been granted, demised, or devised, has terminated.
For example, Tisha's grandmother wrote her will and stated that her twin sister could live in her home until she died. Then, the home would go to Tisha. This is an estate in reversion - the twin sister will enjoy possession of the estate until she passes away, then possession will revert to Tisha.
Reversion and remainder are both types of future interests for a property. Reversion is when the original grantor of the original conveyance retains the right to future possession of the property. Remainder is when that future interest is transferred to someone other than the original grantor.
The ordinary conventional life estate with remainder or reversion, for example, does not continue for an indefinite period but terminates when the person on whose life the estate is based, or the life tenant, becomes deceased.
A reversion is that portion of a fee estate that continues in the grantor after the grantor has conveyed a life estate. For example, when A conveys a life estate to B, the portion of the fee estate remaining in A is a reversion. When B's life estate ends, the right to ownership and possession will revert to A.