What legal term refers to the property interest that remains after a life estate?

The correct answer is that the legal term referring to the property interest that remains after a life estate is called a remainder. A remainder is a future interest held by a third party prior to the termination of a life estate. When the life estate ends—typically upon the death of the life tenant—the property automatically passes to the person or entity holding the remainder interest.

In a life estate situation, the life tenant has the right to use and enjoy the property for their lifetime, but they cannot sell or dispose of the property in a way that would affect the future interest. Once the life tenant passes, the portion of the property interest that was assigned to the remainder beneficiary comes into effect. This is crucial in estate planning and property transfer, as it ensures that the wishes of the original property owner regarding how the property should be distributed after their death are honored.

Joint tenancy denotes a form of ownership by two or more people with rights of survivorship, while fee simple refers to the most complete form of property ownership, not contingent upon any conditions. Reversion, on the other hand, entails a future interest that goes back to the original grantor after a life estate ends, not to a third party, distinguishing it from a remainder.