![]() Your residual beneficiaries cannot benefit from the home until your spouse dies.Īdditionally, a testator may leave directions in their will which allow for their executor to sell the residence subject to the life estate and purchase (with the sale proceeds) another property which is subject to the same conditions of the life estate stipulated in the will. In this scenario, your spouse may choose to live with their children and rent out your home pocketing the rental proceeds. For example, you may choose to leave your spouse a transferrable life estate for the duration of their life, but you wish for the property to be gifted to your children upon the death of your spouse. The beneficiary may choose to rent out or otherwise use the property for their personal profit. For example, you may give your sibling a life estate to live in your property to provide care for your elderly parent for the duration of your parent’s life, but after your parent dies, the property is to be transferred to your nieces and nephews.Ī life estate is registrable on the Title of the subject property to ensure the interest is known and the property cannot be sold without the life tenant’s knowledge and consent.Ī life estate may be transferrable, meaning the beneficiary of the life estates does not necessarily have to occupy the property for the duration of their life. ![]() The residual beneficiaries of the property can only receive full ownership and control of the property when the person granted the life estate dies.Ī life estate may also be “pur autre vie” – that is where you give one person the right to live in your property for the duration of another person’s life. The essence of a life estate is that the beneficiary of the life estate is allowed to live in the subject property without interference even though the property is technically owned by someone else (for example, your children). In this scenario, your spouse is the beneficiary of the life estate and your children are the residual beneficiaries of the property, but your children only receive their benefit of the property after your spouse dies. However, once your spouse dies, you want to gift your property to your children. For example, you may wish to allow your spouse to live in your property after your death for the remainder of their lifetime. Once that person dies, the property is gifted to other people. ![]() Life estatesĪ standard life estate allows a person to live in your property for the duration of their life. This right can be given by either a life estate or a right of residence. In some cases, you may wish to leave someone a right to live in your property after you die, but you want to gift the legal ownership of the property to someone else.
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