A life tenant holds property rights only for their lifetime. Knowing how this interest works helps heirs avoid disputes, planners structure inheritances, investors assess risk and students grasp key concepts.
A life tenant has the right to possess, use and benefit from real property for the duration of a specified life, but cannot transfer full ownership.
Life Estate: The interest held by the life tenant.
Remainderman: The party receiving the property after the life estate ends.
Per Stirpes: A method of passing interests to descendants if a beneficiary predeceases the testator.
The life tenant can live in, occupy and control the property as if they held full title.
They may collect rents, harvest timber or receive mineral royalties from existing leases.
Life tenants must avoid actions that significantly reduce the property’s value (“waste”), make large structural changes or create liens without remaindermen’s consent.
Ordinary repairs (roof patch, painting) are the life tenant’s duty; major capital expenses (new roof, structural work) typically fall to the remainderman unless agreement says otherwise.
Life tenants must pay property taxes, homeowner’s insurance and common‐area fees during their tenure.
If the life tenant’s neglect or waste diminishes value, remaindermen can sue for damages or injunctions.
Creditors may attach a lien to the life estate, but cannot force sale beyond the life tenant’s term.
Remaindermen automatically acquire full title at the life tenant’s death, free of the life estate.
Interest typically vests automatically; probate isn’t required for transfer if properly deeded or in trust.
Vested Remainder: Certain to occur (e.g., named child).
Contingent Remainder: Depends on an event or condition (e.g., surviving spouse).
Lenders view life estates as less marketable; mortgages require consent from remaindermen or subordination agreements.
The property's tax basis splits between life tenant and remaindermen at creation; a new step‐up may occur at termination.
Life estates can protect a home from Medicaid recovery if created more than five years before application.
Creating a life estate may trigger a gift tax on the remainder's value; the life tenant’s estate may get a partial step‐up on termination.
Grantors set up life estates via deed, testamentary will or trust, specifying life tenant and remaindermen.
All interested parties can agree in writing to revoke or modify the life estate.
Courts may partition shared property or terminate forfeit a life estate if waste or abandonment occurs.
A life estate can become fee simple if remaindermen convey their interest back to the life tenant.
Both share ownership, but a life estate limits one party’s interest to a lifetime.
Joint tenants hold equal indefinite interests with rights of survivorship; life tenants have a fixed end date.
Leaseholds expire by term; life estates expire at death and may include broader rights.
They can sell or mortgage only their life interest, not the full title, requiring remaindermen’s consent for full conveyance.
The life tenant covers taxes, insurance and ordinary upkeep; remaindermen fund major capital repairs unless agreed otherwise.
Yes—during their lifetime, the life tenant can exclude anyone, including remaindermen, from possession.
Abandonment may be treated as waste; remaindermen can seek possession or damages.
Valuation uses actuarial tables to determine present value of the life interest and remainder.
Only by agreement of all parties or court order for cause (e.g., waste).
Trusts handle it per trust terms; a deeded life estate bypasses probate if correctly recorded.
Advantages: potential Medicaid protection, reduced estate tax exposure. Disadvantages: possible gift tax and complexity.
