Which of the Following Is True About a Life Estate

question 13

Multiple Choice

Which of the following is true about a life estate?

• A) The holder of a life estate may sell that interest to another.
• B) The holder of a life estate may not lease the property to a tenant because it is uncertain when the holder of the life estate may die.
• C) The holder of a life estate may lose his right if the remainder person desires to re-enter the land.
• D) The holder of the life estate must be related to the remainder person.

---

Definitions:

Sales

The total amount of goods or services sold by a company, serving as a primary source of revenue.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its gross income.

Average Collection Period

The average number of days it takes for a company to collect receivables from its customers, indicating the efficiency of its credit policies.

Discount Period

The time frame in which a buyer can pay less than the full amount due on an invoice if payment is made promptly, incentivizing early payment.