People also ask
What is a life estate and how does it work?
What Is A Life Estate? A life estate is something to consider during estate planning. When an owner of a home signs a life estate, they are in effect passing part of the ownership of a home to another person. This could be thought of as a way to pregift your home to your heirs while still retaining joint ownership.
What is a life estate deed?
A life estate is the vehicle by which the property owner, or the grantor, transfers legal ownership to another person or the life tenant. In many cases, the grantor and the life tenant are the same people, but not always. Typically, the deed will state that the occupant of the property is allowed to use it for the duration of their life.
What is the difference between a life estate and a co-owner?
The co-owner, called the remainderman, can take full ownership of the property after the life tenant’s death. A life estate can be used as a way to avoid probate but still provide the life tenant with a home for as long as they live.
What are the rights of the owner of a life estate?
Under a life estate, the owners have the right to use the property for life. Typically, the life estate process is adopted to streamline inheritance while avoiding probate. The life tenant retains all the rights and responsibilities of an owner except the right to sell or mortgage the property. Understanding a Life Estate