The advantage of a life estate over a will is that the home will not be tied up in probate while heirs must continue paying property tax and a mortgage.
With a life estate, the property is transferred automatically to heirs on the owner’s death.
What is the purpose of a life estate deed?
Typically, the purpose of a life estate deed is to provide for the transfer of the property to the desired person(s) (remainderman) automatically at the death of the property owner who retained the life estate (“life tenant”), without the necessity of probate.
What is a life estate and how does it work?
In common law and statutory law, a life estate (or life tenancy) is the ownership of land for the duration of a person’s life. 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.
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.
What is a life estate agreement?
A life estate is a form of joint ownership that allows one person to remain in a house until his or her death, when it passes to the other owner. The person holding the life estate — the life tenant — possesses the property during his or her life.