| Life estate as "life tenant" |
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An interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person. A form of estate giving a beneficiary all property rights except the right to sell. The right to the estate is terminated upon the death of the beneficiary. A life estate is a term used in common law to describe the ownership of land for the duration of a person's life. In legal terms it is an estate in real property that ends at death. The owner of a life estate is called a "life tenant". A life estate is typically used as an estate planning tool. The use of a life estate can avoid probate and ensure an intended heir will receive title to real property. For example, A may own a home and desire that B inherit the home after A's death. A can effectuate that desire by transferring title to the home to B and retaining a life estate in the home. A keeps a life estate interest and B receives a vested fee simple remainder interest. As soon as a dies, the life estate interest merges with B's remainder interest and B has a fee simple title. This avoids the use of a will and the probate process. The danger to A though, is that the grant to B is irrevocable. "Beneficiary deeds" have been statutorily created in some states to address this issue. Everyone should consider an estate plan to properly manage assets during their lifetime; as well as control their disbursements after death. A will is a legal document which indicates how a person's estate is to be distributed after their death. The person executing the will may provide for equal or unequal division of their property amongst their heirs or anyone else they choose. Without a properly drawn and executed will, the person's estate would pass to their heirs. Most often this is not what testator desires. All wills must be approved and allowed after the testator's death by the Probate Court for the city or town where they resided. A trust is a legal relationship in which one or more person’s transfer’s assets to an individual or institution for the benefit of certain persons or institutions. A living trust can provide for whose benefit your assets are used during your lifetime and to whom they are distributed after your death. This provides continuity of control and immediate access to assets, without the expense and delay of probate. A living trust will eliminate the need for a guardian of your estate if you become incapacitated. Unlike a will, a living trust does not have to be approved by a probate court. This practically eliminates the possibility your estate plan will be contested by an unhappy child or other heir. A freehold interest that expires upon the death of the owner or some other specified person. Trackback(0)
Comments (1)
  written by property in Vietnam, May 16, 2010
This is very interesting. I guess this should go for people or couple who are older, past 60 or something just to make sure everything will be smooth sailing.
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