What type of entity is created to hold property that does not cease to exist upon the owner's death?

A revocable trust is designed specifically to hold property while allowing the owner (or grantor) to maintain control over it during their lifetime. The key feature of a revocable trust is that it remains intact even after the grantor’s death, ensuring a seamless transfer of assets to the designated beneficiaries without the need for probate.

This is particularly advantageous for estate planning, as it helps avoid the lengthy and potentially costly probate process that can occur when assets are solely in the name of the deceased. Additionally, since the trust can be altered or revoked by the grantor at any time before death, it provides flexibility in managing the assets.

Life estates and life estates pur autre vie, while related to property ownership, do not have the same enduring characteristic after the owner's death. A life estate grants an individual rights to a property for their lifetime, and upon their death, those rights terminate, reverting to another specified party. Federal state taxes, on the other hand, are not an entity that holds property; they pertain to taxation issues rather than property ownership or transfer.

Thus, the revocable trust is the correct entity that fits the description of continuing to exist beyond the owner's death and facilitating the transition of property to heirs.