Which of the following is an obligation of the life estate holder?

• A. Right to receive rent
• B. Yearly operational expenses
• C. The right to convert to fee simple
• D. The right to exclude others from property only during day

Answer: (B)

Entering a life estate means the holder is in possession and must keep the property in good shape for the future owner. The obligation that fits this role best is paying yearly operating expenses. These are the ordinary, ongoing costs needed to run and maintain the property—things like property taxes, insurance, utilities, and routine maintenance. These expenses are necessary to prevent waste and preserve value for the remainderman when the life estate ends. Rents, if any, generally go to the life tenant but aren’t the obligation described here. The right to convert to fee simple isn’t an obligation the life tenant must perform; it depends on how the estate was created. And the concept of excluding others isn’t limited to daytime hours.