What is a life estate?

A life estate is a legal arrangement that grants a person the right to use and occupy a property for the duration of their life. This arrangement typically specifies that ownership of the property will revert back to the original owner or another specified individual upon the death of the life tenant.

Establishing a Life Estate

A life estate can be established through a variety of means, such as in a will, trust, or deed. The individual who holds the life estate is known as the life tenant, while the individual who ultimately receives ownership of the property is called the remainderman or remainder beneficiary.

Benefits of a Life Estate

Life estates are often used in estate planning to ensure that a property remains within the family and passes to designated heirs upon the death of the life tenant. This arrangement can help avoid probate, minimize tax implications, and provide for future generations.

Property Rights and Occupancy

While the life tenant has the right to use and occupy the property during their lifetime, they must also maintain the property and pay for any associated expenses, such as taxes and maintenance. The remainderman typically has a future interest in the property and will take full ownership upon the death of the life tenant.