Mel and Susan Carter are working with an estate planner for disposition of their property during life and at death. For their personal residence in Los Angeles, they wish to live in the residence for their life and then transfer the property to their two children, Ron T. Carter and Diane L. Carter, as remaindermen at the date of death of the latest surviving spouse. The interest in their residence is transferred as follows: "To Mel Carter and Susan Carter for life, then to Ron T. Carter and Diane L. Carter." What type of ownership interest will Ron Carter and Diane Carter have after this change in the title? Life estate Fee simple absolute Remainder Conditional estate

Mel and Susan Carter are working with an estate planner for disposition of their property during life and at death. For their personal residence in Los Angeles, they wish to live in the residence for their life and then transfer the property to their two children, Ron T. Carter and Diane L. Carter, as remaindermen at the date of death of the latest surviving spouse. The interest in their residence is transferred as follows: "To Mel Carter and Susan Carter for life, then to Ron T. Carter and Diane L. Carter." What type of ownership interest will Ron Carter and Diane Carter have after this change in the title? Life estate Fee simple absolute Remainder Conditional estate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Mel and Susan Carter are working with an estate planner for disposition of their property during life
and at death. For their personal residence in Los Angeles, they wish to live in the residence for
their life and then transfer the property to their two children, Ron T. Carter and Diane L. Carter, as
remaindermen at the date of death of the latest surviving spouse. The interest in their residence is
transferred as follows:
"To Mel Carter and Susan Carter for life, then to Ron T. Carter and Diane L. Carter."
What type of ownership interest will Ron Carter and Diane Carter have after this change in the
title?
Life estate
Fee simple absolute
Remainder
Conditional estate

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