Other articles from investopedia. But, as discussed below, life estate deeds forfeit control. In states that recognize lady bird deeds or TOD deeds, the probate avoidance benefit of a life estate deed can be achieved without the loss of control.
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. It governs the length of time each owner has rights in the property and what those rights are. The person who holds the life estate is called the life tenant and has possession of the property during their lifetime.
They also can play an important role in Medicaid planning. What are the different types of life estates? What is a life estate and when Will I need one? That person is called the “ life tenant.
After the death of the life tenant , the property passes to the named beneficiaries, called “remaindermen. You can create a life estate by will, trust, or deed. The term “ life estate” describes a kind of joint ownership of real estate, such as a house.
When you do this, you keep a “ life estate. Therefore, it’s always for an indefinite period of time. We usually encounter life estates when dealing with real estate. (more…)