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A life estate is created when a property owner deeds property to another person but first reserves a life estate for a third party. The recipient of a life estate (known as the "life tenant") has full possession of the property for the duration of the tenant's life.
The person with the right to use the property is a life tenant. The individual with a future right is called the remainderman. Once the life tenant passes away, the remainderman owns the property outright.
The Validity of Lady Bird Deeds in Iowa The individual also retains the right to sell, lease, or mortgage the property without the beneficiaries' consent. However, Lady Bird deeds are not recognized in Iowa.
There is no simple way to reverse a life estate because a life estate deed is a legal transfer of the title of a property. This is legally binding and the transaction is complete when the life estate is executed. Essentially, in order to reverse a life estate both parties would need to agree to make it happen.
Traditional Life Estates Can Create Problems The life tenant occupies the house and is responsible for paying taxes and general upkeep. While the beneficiary holds future interest in the house, they have no legal standing to ensure that the house is cared for and does not lose value.