What happens to a life estate when the life tenant passes away?

When a life tenant passes away, the life estate they held is terminated. The correct answer reflects that the property interest can revert to the grantor or pass to designated heirs. This is because life estates are inherently temporary and are defined by the life of the tenant. Upon the death of the life tenant, the interest in the property does not remain with their heirs but instead reverts to the person who granted the life estate, or it may go to another party specified in the original legal agreement.

This principle is significant in property law, ensuring that ownership and interests are clear and legally defined upon certain events like death. Consequently, understanding this transition is crucial for real estate professionals and individuals involved in estate planning.