When the life tenant dies, the property passes to the remaindermen.
The remaindermen will then be the outright owners of the property, they will have the power to use or sell the property, and their creditors may take action to reach the property.
What happens when Remainderman dies before life tenant?
Death of Remainderman
If the only remainderman on a life estate deed dies before the person with the life estate, the property interest remaining after the life estate passes to the remainderman’s legal heirs. If they took ownership as tenants in common, the dead remainderman’s interest belongs to his estate.
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.
What is a life tenant entitled to?
One who holds a life estate. A life tenant has all rights associated with ownership of real property, except the right to sell the property, until his/her (or someone else’s) death. Upon the death of the life tenant, the property reverts back to the owner, or to a third party designated by the owner.
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).