Knowing What a Life Estate Is and How it Applies to Your Will
Knowing What a Life Estate Is and How it Applies to Your Will
A life estate is a limited form of property ownership in which the interest in the property is split. Any person who owns a life estate is entitled to fully use the property during his lifetime.
A form of property ownership is the fee simple absolute. This type of property ownership is the simplest form of property ownership. This would mean that the owner has a full 100 percent undivided interest on his properties. An individual who owns a fee simple absolute property can use it, convey or sell, and leave to someone as his beneficiary duly indicated in his will.
The person who acquired a life estate has a partial interest in a property. He is then called the "life tenant." This provides him full ownership benefits as long as he is still living.
As the life tenant, he can rent the property to earn an income from it. It gives him the privilege to live on it, or make improvement upon it. As a full owner, he can also sell the property to anyone upon his approval.
The life estate is measured by the life of the person who owns the grant and the interest. Thus, only the life tenant's life is used to measure the term. Such privilege is also applicable if the owner decides to rent the property to another person or convey his interest to another person.
Immediately after the life tenant dies and he already vested his interest on his property, the person is called the remainderman. When a life estate is issued, the document must indicate who the property will go to upon the person's demise.