A life estate grants one person the right to use and live in a property for the duration of their life. That person is known as the life tenant. Upon the life tenant’s death, ownership automatically passes to the remainderman, who holds a future interest in the property.
Unlike fee simple ownership—where one party holds full bundle of rights—a life estate splits present and future interests. In joint tenancy and tenancy in common, co‐owners share rights concurrently, and interests pass differently upon death.
Understanding life estates helps homeowners secure lifetime residency, enables heirs to avoid probate, and guides attorneys and financial planners in crafting effective estate plans.
Life estates fit when a property owner prioritizes lifetime use and a guaranteed transfer. Alternatives like joint tenancy or transfer-on-death deeds may offer simpler or more reversible arrangements.
The life tenant has exclusive right to possess, occupy and enjoy the property for life, including using common areas and facilities.
Life tenants may:
Life tenants must maintain the property in good repair, pay all property taxes, insurance premiums and utilities to preserve value for remaindermen.
Remaindermen hold a vested future interest, meaning they are guaranteed to receive full ownership upon the life tenant’s death.
To protect their interest, remaindermen can:
Upon the life tenant’s death, title transfer is automatic and avoids probate. A death certificate and recorded affidavit typically complete the remainderman’s claim.
An attorney prepares a deed or trust that specifies the life tenant, remaindermen and conditions of the life estate.
To be effective, the life estate deed must be recorded in the county land records. Title insurers should be notified to update ownership status.
Revocation requires consent from both life tenant and remaindermen and may involve a quitclaim deed or amended trust document.
At the life tenant’s death, the life estate terminates automatically. Because ownership vests in remaindermen by operation of law, probate is typically unnecessary.
Some jurisdictions reassess property taxes on life estate transfers. Life tenants may retain homestead or senior exemptions, depending on local rules.
For remaindermen, the property’s tax basis generally steps up to fair market value at the life tenant’s death. Gift tax may apply when creating a life estate if remaindermen receive a present interest.
Life estates can be part of Medicaid planning, but transfers within a look-back period may trigger penalties.
Creditors of the life tenant generally cannot seize the remainderman’s interest, though they may target the life tenant’s right to occupancy.
Co-owners share equal interests; upon one’s death, the survivor(s) automatically inherit, but creditors and unintended heirs may be involved.
Allows direct transfer to beneficiaries at death without creating a present life interest.
Trusts offer flexibility, control during life, and can avoid probate similarly to life estates.
Owners often use a life estate alongside trusts or beneficiary deeds to balance control, tax planning and probate avoidance.
Work with a qualified attorney to draft clear, precise deed language outlining each party’s rights.
Obtain written agreement from remaindermen before encumbering or selling the property to prevent later challenges.
Consult tax advisors and elder law specialists to understand how the life estate affects estate, gift and Medicaid planning.
Seek legal advice to determine if a life estate aligns with your goals and to draft proper documents.
Specify life tenant, remaindermen, obligations and any restrictions.
Ensure clear title and record the deed in the county recorder’s office.
Provide copies to remaindermen, mortgage lenders and insurance companies; keep originals in a safe place.
