Ace the Arizona Real Estate Exam 2026 – Unlock Your Property Dreams!

A life tenant holds a property under a life estate, which allows them to use and enjoy the property during their lifetime. However, their rights to transfer the property are limited to ensure that the interest of the remainderman—who will inherit the property after the life tenant's death—is protected.

When it comes to various methods of transfer, a life tenant can indeed live on the property, give their life estate away, or sell the interest to another party; these actions do not permanently transfer the underlying ownership of the property. The life tenant has the right to enjoy the property, but once they pass away, the property automatically reverts to the remainderman, regardless of any transfers the life tenant made during their lifetime.

On the contrary, when it comes to the option of bequeathing the life estate to their children or any entity, this is not permissible because a life estate terminates upon the death of the life tenant. Once the life tenant dies, the property will revert back to the remainderman as designated in the original estate plan. Therefore, a life tenant cannot effectively will the property to their children; it goes to the remainderman.

Understanding the limitations on transferring property under a life estate is crucial in