Who owns a house in a life estate?
life tenant
A life estate is property, usually a residence, that an individual owns and may use for the duration of their lifetime. This person, called the life tenant, shares ownership of the property with another person or persons, who will automatically receive the title to the property upon the death of the life tenant.
Can a banker lend against a life estate?
No banker in his right mind will lend against a life estate because when the borrow dies . . . poof! . . . so does the banker’s security. The property passes free to the remainder interests. Same thing happens with respect to the life tenant’s creditors.
Who is the last living owner of a life estate?
Sort of a “Last Man Standing” game because the property may end up completely owned (in fee simple) by the last surviving owner.
How to set up a life estate for another person?
A way to set up a life estate for another person is for a fee simple property owner to convey property to another person as the life tenant and to yet another person as the remainder interest owner. The deed may look like this: “I, Hotspur, convey Blackacre to Falstaff for life, with a remainder interest to Prince Hal.”
Can a married couple own a life estate in NC?
Incidentally, in North Carolina, a married couple is presumed to own property as “tenants by the entireties” . . . which for purposes of this discussion acts the same as a joint tenancy with rights of survivorship (although they can opt out). Now For Life Estates . . .
Who is the owner of the life estate?
His wife’s ownership interest in the property vested at the time of his death. Unexpectedly, two months after John Jr.’s death, his wife committed suicide. She was survived by a daughter from a previous marriage. Upon the wife’s death, her daughter’s ownership interest in the 1/3 interest in the property vested.
Who is the remainderman on a life estate deed?
A life estate deed is a transfer of the ownership of the real property that is the subject of the deed to one or more persons (the “remainderman”), while retaining ownership of a life estate in the property by the person(s) transferring the property (the “life tenant”).
Can a mother undo a life estate deed?
A life estate deed is a legal transfer of title in the property. Mom can’t undo it if she changes her mind, unless Son agrees to transfer it back to her. Property taxes.
Can a parent force a child to sell a life estate?
However, when the parents have retained a life estate, the creditors of a child cannot force the sale of the property to satisfy a child’s debt. That is because a child’s creditors are not in any better position than the child. Since the child could not sell the property and force the parents out of the property, neither could a child’s creditor.