A life estate is created by a deed that gives the land 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.
How do you give someone a life estate?
Therefore, a life estate is a type of conveyance and is created in much the same way. Generally speaking, the writing used will take the form of the following language: “I, Party A, convey my real property to Party B, for life.” This writing is usually contained within a deed or a will.
Who is the owner of a property in a life estate?
In this case, the property would be given to someone as a life tenant, and then revert to the original owner after the life tenant’s death. If at any point the remainderman dies, their next of kin automatically inherit the right to take full ownership and possession of the property should the life tenant pass away.
Can a living person sell a life estate?
Currently the father owns a life estate and the daughters own the remainder interest. The family can sell the home together but no owner in this situation can force the sell of the entire property without a court order.
Is the property in a life estate a gift?
Life estates bypass probate and are not considered a part of the life tenant’s estate, as the property automatically passes to the remainderman. They also do not count as a gift, so there is no gift tax on transferring property through a life estate.
Who is the remainderman in a life estate?
A life estate is a form of joint ownership that gives a person (the life tenant) ownership rights in property during their lifetime. But when the life tenant dies, the remainder interest in the property goes to the beneficiary, also known as the remainderman.
