Life Estate at Life

Life Estate. Life estates can be used to avoid probate and to give a house to children without giving up the ability to live in it. The life estate scheme divides ownership of a piece of real property between at least two parties—the life tenant and the remainderman.

The holder of a life estate has a full right to possess the property during their life. A life estate deed is a transfer of the ownership of the real property that is the subject of the deed to one or more persons (the remainderman), while retaining ownership of a. However, when you pass on, your interest in the property automatically terminates.

Beware the perils of buying or selling a preconstruction

One such form is the life estate. A life estate is usually property that has been acquired during the lifetime of a person with his or her ownership only lasting through the time he or she lives. The person who holds the life estate is called the life tenant and has possession of the property during their lifetime. 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.