What Is an Estate in Reversion?
An estate in reversion is a future interest in real property that automatically returns to the grantor (or the grantor's heirs) after a lesser estate expires. Reversions arise when a property owner transfers a limited interest (such as a life estate or estate for years) while retaining the right to recover full ownership when the limited interest ends.
How Reversions Work
- Creation: Owner (A) grants a life estate to B; A retains a reversion
- During the life estate: B possesses and uses the property; A holds the reversionary interest
- Upon B's death: The property automatically reverts to A (or A's heirs if A has died)
- No action required: The reversion operates automatically; no deed or court order is needed
Reversion vs. Remainder
- Reversion: Future interest retained by the original grantor
- Remainder: Future interest granted to a third party (not the grantor)
- Key difference: Reversions return property to the grantor; remainders pass it to someone new
Property Rights of the Reversioner
- The reversionary interest can be sold, assigned, or gifted
- The interest can be mortgaged as collateral for a loan
- The interest passes through probate as part of the reversioner's estate
- The reversioner can sue for waste if the life tenant damages the property
Related Terms
- Estate for Years — A leasehold that may create a reversion
- Equity — The ownership interest subject to the reversion
- Estate Planning — Planning involving life estates and reversions
Barnes Walker Estate Planning
Barnes Walker's attorneys advise Florida property owners on life estates, reversionary interests, and remainder planning as part of comprehensive estate plans. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC