A life estate is created by a deed that gives the property to the person "for life" and identifies what should happen to it after that person dies. For example, a deed stating that land would go "to John Doe for life, then to Jane Doe" gives John a valid life estate, and Jane a remainder.
What are the disadvantages of a life estate deed?
- Lack of control for the owner.
- Property taxes, which remain for the life tenant until their death.
- It's tough to reverse.
- The owner is still vulnerable to any debt actions that may be brought against the future beneficiary or remainderman.
What are the characteristics of a life estate?
A life estate allows a person to use and possess, but not have ownership of property (typically land, a home, or other buildings) during his or her lifetime. When the person passes away, the life estate ends and the title holders (remaindermen) have full benefit of the land and income.
What is a life estate known as?
A life estate is an interest in a parcel of real estate lasting the lifetime of an individual, usually the life of the tenant. Life estates, also known as estates for life, are granted by a deed entered into by the fee owner, an executor under a will or by a trustee under an inter vivos trust.
What is the duration of a life estate based on?
A life estate is an interest in land whose duration is measured by a human life. The holder has the right to possess the property as long as he or she lives.
What is the person who is given a life estate called?
The life tenant is the person who has the life estate, or entitlement to the use of property during their lifetime. The second party is the remainderman, or person with a remainder interest who is entitled to full ownership upon the death of the life tenant.