In which type of estate does the owner have the right to possession and use of the property, but no inheritance rights?

The correct answer is that a life estate is characterized by the owner's right to possession and use of the property during their lifetime, while not granting any inheritance rights. This means that when the individual who holds the life estate passes away, the property does not go to their heirs; instead, it reverts back to the original grantor or passes to a designated third party, as specified in the terms of the estate.

In this arrangement, the life tenant has the ability to occupy and use the property, but their rights are limited to their lifetime. The distinguishing feature of a life estate is this non-transferable nature of the estate upon the death of the holder, making it clear that there are no inheritance rights involved.

Understanding the limitations of a life estate is key for real estate professionals, as it highlights the differences in property rights and the implications for ownership and transfer of real property compared to other types of estates, like fee simple absolute or leasehold estates, which offer full ownership and inheritance rights.