A legal instrument conveys property ownership, dividing it into present and future interests. One party, the life tenant, receives the right to use and possess the property for the duration of their lifetime. Upon their death, ownership automatically transfers to another party, the remainderman, who holds the future interest. For instance, an individual might transfer a residence to their child, retaining the right to live there for their lifetime. Upon that individuals death, the child becomes the sole owner. This type of arrangement is particularly governed by the laws and regulations specific to the state where the property is located.
This arrangement offers potential benefits such as avoiding probate upon the life tenant’s death, streamlining the transfer of property to the remainderman. It can also be a useful tool for estate planning, enabling individuals to pass assets to future generations while retaining control during their lives. Historically, this type of conveyance provided a means for families to protect property from certain creditors or to ensure its preservation for future generations.
