Life Estate
A life estate is a freehold ownership interest in real property that lasts only for the lifetime of a designated person (the life tenant), after which the property passes to another party.
Exam Tip
Life estate lasts for someone's LIFETIME. Life tenant cannot commit waste. Remainderman gets property automatically at death. Pur autre vie = measured by another's life.
What is a Life Estate?
A life estate is a form of property ownership that grants the holder (life tenant) the right to use, occupy, and benefit from the property for their lifetime. Upon the life tenant's death, the property automatically transfers to the remainderman.
Key Parties
| Party | Role |
|---|---|
| Life Tenant | Person who holds the life estate |
| Remainderman | Person who receives property after life tenant dies |
| Measuring Life | Person whose life determines estate duration |
Life Tenant Rights
| Right | Description |
|---|---|
| Possession | Live in or occupy the property |
| Income | Collect rent if property is leased |
| Use | Use property for any legal purpose |
| Improvements | Make improvements (at their cost) |
Life Tenant Obligations
| Obligation | Description |
|---|---|
| Maintenance | Keep property in reasonable repair |
| Property Taxes | Pay current property taxes |
| Insurance | Maintain property insurance |
| No Waste | Cannot damage or diminish property value |
Types of Life Estates
| Type | Measuring Life |
|---|---|
| Ordinary Life Estate | Life tenant's own life |
| Pur Autre Vie | Another person's life |
Doctrine of Waste
| Type | Description |
|---|---|
| Voluntary Waste | Intentional damage to property |
| Permissive Waste | Neglect causing deterioration |
| Ameliorative Waste | Improvements that change property character |
Common Uses
| Situation | Benefit |
|---|---|
| Estate Planning | Parent stays in home, children inherit |
| Medicaid Planning | May protect home from Medicaid recovery |
| Charitable Giving | Donor keeps use, charity gets remainder |
Life Estate vs. Other Interests
| Interest | Duration | Transferable |
|---|---|---|
| Fee Simple | Forever | Fully |
| Life Estate | Life of tenant | Limited (can't exceed life) |
| Lease | Fixed term | Per lease terms |
Valuation
Life estates are valued based on:
- Life tenant's age
- IRS actuarial tables
- Property's fair market value
Exam Alert
Life estate = ownership for someone's LIFETIME only. Life tenant has full use rights but CANNOT commit waste. Property automatically goes to remainderman at death - no probate needed. Pur autre vie = measured by ANOTHER person's life.
Study This Term In
Related Terms
Fee Simple
Real EstateFee simple (also called fee simple absolute) is the most complete form of property ownership, granting the owner full bundle of rights including the right to use, sell, lease, or bequeath the property without restrictions, with ownership lasting indefinitely and passing to heirs.
Deed
Real EstateA deed is a legal document that transfers ownership (title) of real property from one party to another.