A life estate creates a form of joint ownership between you and your intended beneficiary. It is sometimes used as an alternative to a will.
While choosing to create a life estate as part of your estate plan can be an effective means of avoiding probate, using this approach can have both “pros” and “cons”. These things should be carefully considered before choosing this method as an alternative to a will. If not, the result could have a long-lasting, even irreversible, consequences on you or your loved ones.
A life estate is a form of joint ownership in which one person (the life tenant) has the right to occupy real estate and other person (the remainderman) who fully owns the property at the life tenant’s passing.
The current owner of real estate can create a life estate for themselves or another person.