Answer: Someone with a life estate has a right to the use of the asset in which she or he has a life estate for her or his life.
Although the life tenant can sell the life estate, the buyer would have ownership rights only as long as the original life tenant lived.
A remainder interest may also be sold.
Can you sell a life estate property?
You can sell a life estate property prior to the life tenant’s death. If you sell while your mother still lives, the value of the proceeds would be divided between the life tenant (your Mom) and the remainderman (you) according to IRS actuarial tables.
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).
How do you value a life estate?
life estate rate). The value of the remainder is found by taking the resulting life estate value and deducting it from the value of the property (or multiplying the value of the property by the remainder rate).
Can a life estate be terminated?
Due to this termination, a life estate holder cannot transfer his or her interest in the property through a will. Importantly, a life estate cannot be revoked. Therefore, once a person sets up his or her ownership of a property in a life estate, he or she cannot sell or otherwise dispose of the home.