Which type of estate can be terminated upon the happening of a designated event?

The correct answer is Fee Simple Conditional. This type of estate is defined by the fact that it can be terminated upon the occurrence of a specific event or condition. In a Fee Simple Conditional arrangement, the ownership of the property is granted with certain conditions attached, and if these conditions are violated or if the designated event occurs, the estate can revert back to the grantor or a third party.

For example, if a property is conveyed to someone under the condition that the property must be used for educational purposes, and if it is later used for a different purpose, this could trigger the termination of the estate. This feature distinguishes Fee Simple Conditional from other types of estates, such as Fee Simple Absolute, which is not dependent on any conditions and remains in effect unless actively terminated.

The other types of estates mentioned do not have this conditional aspect. A Life Estate ends upon the death of the individual holding it, and an Estate for Years is simply a fixed-term lease that terminates at the end of the specified duration without any designated event influencing its termination. Hence, Fee Simple Conditional is the only type of estate that can be terminated based on the occurrence of a specific event.