life estate

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Related to Life Estates: life tenant

Life Estate

An estate whose duration is limited to the life of the party holding it, or some other person.

life estate

n. the right to use or occupy real property for one's life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant--this is called "reversion." Example of creation of a life estate: "I grant to mother, Molly McCree, the right to live in and/or receive rents from said real property, until her death," or "I give my daughter, Sadie Hawkins, said real property, subject to a life estate to my mother, Molly McCree." This means a woman's mother, Molly, gets to live in the house until she dies, then the woman's daughter, Sadie, will own the property.

See: freehold

life estate

an estate of freehold that exists for the duration of the life of the grantee. If the grantee should assign his interest, that taken by the assignee is referred to as an estate pur autre vie (i.e. ‘an estate for the life of someone else’, namely the original grantee). Since 1925 a life estate can exist only as an equitable interest behind a trust.

See INSURABLE INTEREST, INSURANCE.

References in periodicals archive ?
Thus, the widow acquires a life estate and functions as a life tenant with the children becoming the remaindermen.
Note that property subject to a retained life estate will qualify for the IRC section 1014 basis step-up.
To determine if and how the homestead creditor exemption applies to life estates and remainder interests, the following questions must be addressed: 1) whether individuals with fractional ownership in time can claim the homestead creditor exemption, and if so 2) which of the co-owners qualify for the homestead creditor exemption.
In some cases, certain life estates also qualify for the marital deduction.
51) By restricting asset transfer rules, requiring use of the income-first method of asset allocation, limiting the usefulness of annuities and life estates as a way to shelter assets, and including home equity as a countable asset, the DRA severely curtails previously available Medicaid planning options.
If the older generation is charitably inclined, it might consider using an often overlooked strategy: The charitable life estate.
In addition, A and U will separately amortize their basis in their life estates in [QSST.
Gift vehicles covered include outright gifts, bequests, charitable gift annuities, charitable remainder trusts, bargain sales, charitable lead trusts, beneficiary designations and retained life estates.
Life estates, reversions, remainders, and annuities (other than commercial contracts--see Q 603) are valued according to estate and gift tax valuation tables (see Q 909).
Remainder interest transactions have taken advantage of the fact that property interests can be divided between life estates (i.
Baskies, The New Homestead Trap: Surviving Spouses Are Trapped by Life Estates They No Longer Want or Can Afford, 81 FLA.
First, they suggest that waste conflicts (and the difficult fact intensive and subjective inquiries they require) are generally a thing of the past, a problem that well-trained and attentive lawyers can easily avoid for their clients by creating trusts rather than legal life estates.