Define: Life Estate

Life Estate
Life Estate
Quick Summary of Life Estate

A life estate is a type of property ownership that grants an individual the right to use and enjoy a property for the duration of their life. The person holding the life estate, known as the life tenant, has the right to occupy the property, collect rents, and use it as they see fit during their lifetime. However, they do not have the right to sell or transfer ownership of the property beyond their own lifetime. Upon the death of the life tenant, the property reverts to the remainderman or reversioner, who holds a future interest in the property. Life estates are often created in wills or trust agreements to provide for the use of property by a beneficiary while preserving its ultimate ownership for another individual or entity.

What is the dictionary definition of Life Estate?
Dictionary Definition of Life Estate

n. the right to use or occupy real property for one’s life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant-this is called “reversion.” Example of creation of a life estate: “I grant to my mother, Molly McCree, the right to live in and/or receive rents from said real property, until her death,” or “I give my daughter, Sadie Hawkins, said real property, subject to a life estate to my mother, Molly McCree.” This means a woman’s mother, Molly, gets to live in the house until she dies, then the woman’s daughter, Sadie, will own the property.

Life Estate FAQ'S

A life estate is a type of ownership interest in real property that grants an individual, known as the life tenant, the right to use and occupy the property for the duration of their life.

With a life estate, the life tenant has the legal right to possess and enjoy the property during their lifetime. However, ownership of the property reverts to another individual or entity, known as the remainderman, upon the death of the life tenant.

A life estate is typically created by a property owner (grantor) who conveys ownership of the property to a life tenant while retaining a future interest or naming a remainderman to inherit the property upon the life tenant’s death.

As a life tenant, an individual has the right to use and occupy the property, maintain it, and collect any income generated from the property during their lifetime. However, they must also adhere to any conditions or restrictions specified in the life estate deed.

While the life tenant has the right to use and occupy the property, the remainderman typically has a vested interest in the property, subject to the life estate. However, the remainderman cannot take possession of the property or interfere with the life tenant’s rights.

Yes, a life estate can be sold or transferred by the life tenant, subject to any restrictions or conditions set forth in the life estate deed. However, any sale or transfer must be approved by the remainderman, and the life tenant cannot convey a greater interest than they possess.

Upon the death of the life tenant, ownership of the property automatically passes to the remainderman, who becomes the sole owner of the property, free from the life estate.

In some cases, a life estate may be terminated early by mutual agreement between the life tenant and the remainderman, or through legal action such as a court petition to terminate the life estate.

Creating a life estate can provide benefits such as allowing individuals to retain control over their property during their lifetime while ensuring that the property passes to designated heirs or beneficiaries upon their death, thus avoiding probate.

Drawbacks of a life estate may include restrictions on the life tenant’s ability to sell or mortgage the property, potential conflicts between the life tenant and remainderman, and complexities involved in terminating or modifying the life estate arrangement.

Related Phrases
No related content found.
Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

  • Page URL:https://dlssolicitors.com/define/life-estate/
  • Modern Language Association (MLA):Life Estate. dlssolicitors.com. DLS Solicitors. March 29, 2024 https://dlssolicitors.com/define/life-estate/.
  • Chicago Manual of Style (CMS):Life Estate. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/life-estate/ (accessed: March 29, 2024).
  • American Psychological Association (APA):Life Estate. dlssolicitors.com. Retrieved March 29, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/life-estate/