Question

An estate of inheritance or a perpetual estate would be:

Selections

A. An estate for years

B. A fee simple estate

C. Less than freehold estate

D. A life estate

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Answer: B

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5 Keys Summary

• The term “Fee Simple Estate” is synonymous with an “Estate of Inheritance” or a “Perpetual Estate”.

• A fee simple estate represents the greatest interest in a parcel of land that one can possibly own, granting absolute and virtually unrestricted ownership.

• This form of ownership is defined by its unlimited duration and can be freely sold, gifted, or conveyed in a will to the owner’s heirs.

• Options classified as a “less than freehold estate” (such as an estate for years) are leasehold interests characterized by a fixed and limited period of time, not an indefinite duration.

• Although a life estate is a type of freehold estate, its duration is limited to the lifetime of one designated person, and is therefore not considered perpetual.

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