What is it called when real property is automatically transferred to an heir after the owner's death?

The process by which real property is automatically transferred to an heir after the owner's death is referred to as a "remainder interest." When an individual holds a life estate, they have the right to use and occupy the property during their lifetime, but upon their death, the property does not automatically go to their heirs; instead, it will transfer to a named remainder beneficiary, if one is designated.

A fee simple absolute does confer full ownership rights that can be passed on to heirs, but the term specifically refers to the type of ownership rather than the mechanism of automatic transfer upon death. Tenancy at sufferance describes a situation where a tenant remains in possession of a property after their lease has expired, which is unrelated to inheritance matters.

In contrast, a remainder interest specifically involves the future interest in the property that takes effect upon the death of the life tenant, making it the most accurate choice to describe the automatic transfer to an heir.