A Life estate is a freehold form of property in land that is measured by the life of an individual. It is usually the case that the measuring life is the life of the person who holds the life estate, but it need not be.
Assume a grant from the crown. The crown holds ownership of all land, as will be discussed in Chapter 5. This grant therefore creates an estate, and the grantee immediately after the time of the grant holds the estate created.
---> Grant To A for life.(1)
As a result of this grant A holds a life estate.(2) Absent any words that indicate that a different life should be used as the measuring life, the estate holder's life is the measuring life. When A dies the estate ceases to exist. A is at liberty to transfer the life estate to another, but this does not affect the length of the life estate. The life estate will still end when A dies.
Consider the following grant.
---> Grant To A for the life of B.
As a result of this grant A holds a life estate for the life of B. B does not hold any property as a result of the grant. This leaves open a possibility that must be addressed. What if A were to die before B. There is no doubt that a dead former person cannot hold a form of property. If we were to assume that the grantor held an estate in fee simple immediately prior to the grant, the grantor would, immediately after the grant, hold an estate in remainder in fee simple. The grantor’s estate in remainder would not cease being an estate in remainder until B died.(3) Who holds the life estate for the period of time between A's death and B's death?
Common law courts, as absurd as it may sound, came to the conclusion that whoever was the first person to occupy the land subsequent to the death of the estate holder was at liberty to occupy the land until the death of the measuring life.(4) Legislation has changed this common law position. It is now possible for an heir to inherit the property or for estate holder to devise the life estate where the holder of the life estate holds it for the duration of the lifetime of another.(5)
Life estates can also be created by operation of law. These methods have been abolished by statute in most provinces. That being the case,only a brief summary in necessary.
Assume a situation where H has contracted marriage with W. If there was a child of the marriage, the concept of Curtesy applied. Should W die before H, H would acquire a life estate in all of the land in which W held freehold estates of inheritance immediately prior to her death.
Curtesy was abolished in Ontario as of 31 Mar 78 by the Succession Law Reform Act.(6) But note this important fact. The statute was not retroactive. Consequently, there could still be people in the same situation as H even though Curtesy has been abolished.
Assume a situation where W contracts marriage with H. If H dies before W, W would acquire a 1/3 interest in all of the freehold estates of inheritance held by H at any point during the marriage if there was a possibility of a child of the marriage being born. This was so even if the property held by H during the marriage was not held by H when he died.
Dower was abolished in Ontario as of 31 Mar 78 by the Family LawReform Act(7) S.O. 1978 c2 s 70. Keep in mind that the same warning applies here as with the abolition of Curtesy.
1. It is important to note the structure of a grant. In
this grant "To A" are the words of purchase. Words of purchase indicate
the person who is to acquire the form of property as a result of this grant.
The words "for life" are words of limitation. Words of limitation
indicate what form of property is to be acquired by the person referred to
by the words of purchase. The same applies had this been a devise.
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2. You may find that other sources will tell you that the
grantor holds an estate in fee simple in reversion. Do not be needlessly confused.
An estate in reversion is an estate in remainder held by the grantor.
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3.If we were to assume
that the grantor held an estate in fee simple immediately prior to the grant,
the grantor would, immediately after the grant, hold an estate in remainder
in fee simple. The grantor’s estate in remainder would not cease being
an estate in remainder until B died.
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4. If there was ever a common law proposition to suspect,
this would have to be the one. Is it not the case that the estate holder,
immediately prior to the time of his death, holds a form of property? Why
would this form of property not be treated in the same manner as any other
from of property that the dead former estate holder held?
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5. But, this legislation does not result in a life estate
becoming an estate of inheritance simply because it can now be inherited.
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6. Succession Law Reform Act Amended by: S.O. 1994, c. 27, s. 63; S.O. 1997,
c. 25, Sched. E, s. 12; S.O. 1999, c. 12,Sched. B, s. 17; S.O. 1999, c. 6,
s. 61; S.O. 2002, c. 17, Sched. F.
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7. Family Law Reform Act R.S.O 1978, c. 152,
s. 70 repealed with some exceptions (including the abolition of dower) by
the The Family Law Act, R.S.O, 1986, c. 4, s. 71.
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