Legal Life Estate Example
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FAQ
A remainderman is a third person other than the estate's creator, initial holder, or either's heirs. For example, if Blackacre is granted ?to Thelma for life, and then to Louise??Thelma has a life estate and Louise is a remainderman.
To create a life interest, property is transferred to trustees who hold it ing to the instructions contained in the trust deed (in this case, your will) during the life of the beneficiary. Your will also says what you want to happen after the life beneficiary dies.
For example, a homeowner may choose to build an addition onto their house and would not be limited by a lease or other contractual obligation. Owners of fee simple land maintain full control over the interests of the land for an unlimited duration, usually until they convey the interests of the land to someone else.
Example: John's will creates a life interest in the farmland he owned to his partner Molly, with the farm to go to their child Lex on Molly's death. John's will states 'I give a life interest in the farmland to my partner Molly, and the remainder interest in the farmland to my child Lex'.
A ?life interest? is the legal approach often used by parents to do this. The deed of the property is transferred but the parent keeps a contractual agreement allowing them to live in it for the rest of their lives.