The life tenant cannot sell or mortgage the property without the agreement of the remaindermen.
Purchasing a life estate should not result in a transfer penalty if you buy a life estate in someone else’s home, pay an appropriate amount for the property and live in the house for more than a year.
Does a person with a life estate own the property?
A person owns property in a life estate only throughout their lifetime. Beneficiaries cannot sell property in a life estate before the beneficiary’s death. One benefit of a life estate is that property can pass when the life tenant dies without being part of the tenant’s estate.
Can you mortgage a life estate?
A life estate lets you have your house and give it away too. With a life estate, you give your heir the deed, so the property won’t pass through probate, but you reserve the right to keep living there.
Who owns the house in a life estate?
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”.
Can someone with a life estate rent the property?
A life estate is an ownership interest in a piece of property, like a house or a condo, that lasts for the life of a named person, but ends on that person’s death. He or she need not live in the property and use it as his or her home, but can rent it out full or part time or even sell the life interest in the property.