What type of future interest passes directly to a beneficiary?

Study for the Wills Bar Exam. Prepare with flashcards and multiple choice questions; every question has hints and explanations. Get ready for your exam success!

A remainder interest is the correct answer because it specifically denotes a future interest that is created in a third party to take effect after the termination of a preceding estate, such as a life estate. In a situation where a life estate is granted to one person, a remainder interest can be granted to another person; once the life estate ends (upon the death of the life tenant), the property then automatically transfers to the remainder beneficiary. This direct passage of interest allows the remainder beneficiary to have a clear expectation of receiving the property in the future without needing to take any action on their part.

In contrast, a life estate itself does not pass directly to a beneficiary in the sense of conveying a future interest since it is a present interest that grants occupancy and use of the property only for the life of the holder. Joint tenancy and tenancy by entirety both involve concurrent ownership styles that do not primarily deal with future interests passing directly to a beneficiary; rather, they focus on the surviving interest of co-owners in the event of death. Thus, the nature of a remainder interest stands out in its function and legal manifestation as a future interest designated to a beneficiary.

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