What the Old Rule Did
The Rule in Shelley's Case was one of the oldest property doctrines in English law. Under the old rule, if a grantor gave someone a life estate and then directed that the remainder go to that person's heirs or heirs of the body, the law merged the two interests. The life tenant was treated as owning the full fee simple. This effectively cut the heirs out of an independent interest.
Arizona has the Shelley case abolished entirely through this statute.
When a remainder is limited to the heirs or heirs of the body of a person to whom a life estate in the same premises is given, the persons who, on the termination of the life estate, are the heirs or heirs of the body of the life tenant shall take as purchasers by virtue of the remainder so limited to them.
A.R.S. § 33-231What This Means for Families Today
The practical effect is straightforward. If a deed or trust gives someone a life estate with the remainder going to "their heirs" or "heirs of the body," Arizona treats the heirs as independent owners. They take the property when the life estate ends.
The heirs receive the property as purchasers, not as part of the life tenant's estate. This means the life tenant cannot sell or encumber the full property on their own. The remainder interest belongs to the heirs as a separate right.
Families who use life estate arrangements can rely on the fact that the intended beneficiaries will actually receive the property when the life tenant passes away.