Century 21 Agent in Rancho Cucamonga Li Li Hwang Shares: What is the Life Estate?

Century 21 Agent in Rancho Cucamonga Li Li Hwang Shares: What is the Life Estate? 

Property Held in a Life Estate - 

A life estate is a present interest in property whose duaraton is limited to the life of a certain person, usually the person receiving the life estate, called the Life Tenant.  The purpose of a life estate is to allow someone to use or occupy property for their lifetime and predetermine how that property is passed at that person's death. 
For Example:  If Alice grants a proeprty " to Bill for Life, " then Bill, as the life tenant, will have the right to use or occupy the property for his life.  Bill Will also have the right to sell his interest in the property, but that interest will still be limited in duration and will end upon Bill's death.   On Bill's death the property will revert to Alice or Alice's heirs if she predeceased Bill.   If Alice grants the same property "to Bill for life, then to Carol"  Bill will still have the life estate, but now the property automatically pass to Carol or Carl's heirs upon Bill's death.   The typical way in which a life estate is used as an estate planning tool is that Alice grants the property " to Alice for life, then to my daughter, Betty. " Alice ensures that she will occupy the property for her lifetime and that Betty will automatically receive it on Alice's death.   One problem with this is that once the grant is made,  Betty's interest in the property, called a remainder, is irrevocable. 

~ Please Consult all details with Estate Planning Attorneys and Law Offices ~

Li Li Hwang (909) 910-1188 | | CENTURY 21 PrimeTime Realtors | Rancho Cucamonga and Chino, CA 黃莉莉 | Cal Dre# 01059188 | Broker Associate | Century 21 PrimeTime( CalDRE#01845447)Bringing Buyers and Sellers Together over 29 Years in Real Estate