A life estate is an estate that lasts during the owner’s lifetime. It allows you to transfer ownership of real property without going through probate. This can be especially useful if you want to avoid probate but also don’t want to lose control over when or how the property is sold. Creating a life estate involves creating a trust: an arrangement in which one person (the trustee) manages assets for another person (the beneficiary).
What is a life estate?
A life estate is a type of trust that allows you to use a property for the rest of your life, then pass it on to someone else. You can sell the property or give it away during your lifetime. The main benefit of this type of trust is flexibility: once you create a life estate and appoint someone as trustee (the person who manages the property), they will have complete control over how much money you spend on living expenses and other bills related to owning/managing real estate.
The biggest disadvantage? There are no guarantees that anyone would accept your offer if they knew they were getting half ownership in an expensive piece of land at no cost whatsoever!
Why use a life estate?
A life estate is the right to use and occupy real property for the term of your life or the remainder of your natural life (the “remainderman”). When you die, all rights to the property pass on to someone else. In other words, it’s a way …Creating A Life Estate: What It Is And Why You Need One. Read More