A limited fee simple that must eventually pass from the donee to certain heirs (or heirs of the body). Should the designated heir fail to be alive at the time of the donee’s death, then the property reverts to the donor (or the donor’s estate). However, the entire estate remains with the donee until his/her death, the donor having the mere possibility of a reverter.
EXAMPLE:
Jane gave Kim (her daughter), title to a home. She also instructed Kim to pass the home to Kim’s daughter; or – if Kim did not have a daughter – to Kim’s son (upon Kim’s death). This gift to Kim was a conditional fee, since if Kim died without a daughter (or son), title to the home returned to Jane (ie, Kim’s mother). If Jane predeceased Kim, then the home would return to Jane’s estate (and pass under Kim’s will).
