What Does Life Estate Mean In Estate Planning?
Often used with real estate, this gives one or more people the right to live on and maintain property for the duration of their lives and provides for transfer of this property automatically to a new owner or owners one the life estate individual/s pass away. This property would transfer outside of probate.
Example Of Life Estate In Regards To Estate Planning
My parents deeded me their house, but have retained a life estate interest. They can live there or rent it out until they pass, but I am guaranteed to own it at their deaths.