Which term describes a temporary ownership of real estate that expires upon the death of a designated person?

The term that describes a temporary ownership of real estate that expires upon the death of a designated person is known as a life estate. In a life estate, the owner, referred to as the life tenant, possesses the property and enjoys all the rights of ownership, such as the right to occupy, use, and even transfer the estate during their lifetime. However, the key characteristic is that the ownership concludes when the life tenant dies, at which point the property either reverts back to the original grantor or passes to a designated third party, often referred to as the remainderman.

This concept is vital in estate planning and property law because it allows an individual to control the use of property during their life while also designating a future owner. Understanding life estates is essential to navigating property rights and obligations, particularly in the context of inheritance.

The other terms do not apply in the same way: a fee simple represents the most complete form of ownership without restrictions on time; a leasehold estate typically refers to a temporary arrangement where one parties rents property from another for a specified duration; and co-ownership signifies shared ownership among multiple parties without necessarily tying it to an individual's lifespan.