Ace the Guam Real Estate Exam 2026 – Unlock Your Island Dream Career!

A property under a life estate passes to either the original grantor or a designated remainder beneficiary upon the death of the life tenant. This aligns with the legal definition of a life estate, which is an interest in property that lasts for the lifetime of a specific individual, known as the life tenant. Once that individual passes away, the rights to the property are transferred to the next party outlined in the life estate document.

If the life estate is set with a remainder interest, that designated party, known as the remainderman, would receive the property. If no remainder was specified in the estate documents, then the property would revert back to the grantor, which is the person who created the life estate. This process ensures that the property does not become unowned or fall under escheat laws, which apply when property has no lawful owner. Additionally, the property is not sold to the highest bidder or subdivided among the tenant’s heirs; rather, it is specifically designated to transfer ownership based on the terms laid out in the life estate arrangement.