Calvin transfers land to a trust. His daughter Melissa will receive the income from the land for ten years. After ten years, the land is returned to Calvin. Calvin's interest is

Question

Quizplus · Accepted Answer

Calvin's interest in the land is a reversionary interest, meaning that he has transferred ownership of the land to the trust but will regain ownership after ten years. This is different from a life estate, where the owner would transfer ownership of the land but retain the right to use and enjoy it for the duration of their life. It is also different from a term certain, where the ownership would transfer back to Calvin after a fixed period of time regardless of any other conditions.

Calvin Transfers Land to a Trust