What is a Life Estate?

There are many different types of deeds that allow people to hold the interest in property for a certain duration of time. Among the most well-known deeds are warranty deeds, quitclaim deeds and life estate deeds. Most people are familiar with both warranty and quitclaim deeds. life estates, however, can be more confusing.

What is Life Estate?

Essentially, a life estate is a form of a deed. A deed is a legal document which gives a person the right to property ownership. Property ownership is the right of a person to possess, enjoy and sell or give away a piece of property. The terms of property ownership vary greatly, depending on the type of deed that is used to convey ownership. A life estate deed maintains a very specific definition of property ownership.

Life Tenant Rights

A life estate gives a person the right to live on, use and enjoy a piece of property for the duration of their life. The person who is granted the life estate is known as a life tenant. A life tenant has the right to allow another person to live within the property throughout the duration of the life estate. They do not have the right to sell the land, however, as they do not own the property. The permanent owner of the property is known as the grantor. A life estate is a temporary deed. Upon the death of the life tenant, the exclusive right to the property is returned to the grantor.

Deed or Will?

Life estates can be created by deed or will. Grantors can create and file a life estate deed and convey a piece of property onto a life tenant while they are alive. They can also create a life estate as part of their will, in which they grant the estate to their chosen life tenant upon their death.