As with the defeasible fees, a life estate can be sold or transferred to a third party.
However, since a holder cannot transfer more than he or she owns, the buyer or recipient will have to surrender the land upon the death of the person who was the measuring life for the original life estate.
Is a life estate transferable?
In legal terms, it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person. The owner of a life estate is called a “life tenant”.
Who owns the property in a life estate?
A life estate deed is a legal document that changes the ownership of a piece of real property. The person who owns the real property (in this example, Mom) signs a deed that will pass the ownership of the property automatically upon her death to someone else, known as the “remainderman” (in this example, Son).
What happens to a life estate after the person dies?
A life estate allows lifetime use of a home before it passes to the final beneficiaries. A “life estate” occurs when a person has a legal right to use property during life, but does not own the property outright. After the death of the life tenant, the property passes to the named beneficiaries, called “remaindermen.”
How is a legal life estate created?
A non-inheritable freehold estate can’t be left to heirs and terminates on the death of the person on whose life it is based. Non-inheritable freehold estates include conventional life estates and legal life estates. Conventional life estates are created by the actions of a grantor by means of a deed, will, or trust.