What does it mean to have a life interest in a property?

A life interest gives a right of occupation and a right to any income, if for example the property was rented out. The surviving spouse can normally move home and use the deceased spouse’s share to buy another property provided there isn’t a loss in value.

Can a property with life interest be sold?

A person with life interest generally (as we have not perused the Will) does not have the right to sell, transfer or alienate the property to the detriment of the absolute owner, which in your case is the son, i.e., you. It is a limited right to enjoy the property up to the death of the life holder.

Do you have a life interest in your home?

A life interest is granted if a property or other asset (such as shares) is held on trust for someone’s benefit, for his or her lifetime. They may wish to allow their second spouse to live in the home for a period of time, and then pass the home to the children as an asset.

Is a life interest a legal interest?

A life interest trust included in a Will is a legal entity which is set up in such a way that allows assets belonging to the deceased to be placed within the trust for the benefit of a named individual, usually the surviving spouse, known as the ‘life tenant’.

What does lifetime interest in property mean?

A Life Interest provides that property and other personal assets like shares or money in bank account are held on Trust for the benefit of a person for their lifetime. If a Life Interest is granted in a house, the benefit is usually something like being able to live in the house.

Can you sell your remainder interest in a life estate?

A life estate has its limits, and the limits are set forth in the law. In order to sell the property, the holder of the life estate and the holder of the remainder interest must sell it together. No one is going to buy the property from one of the stakeholders.

Can I Borrow equity on property that has life estate?

If your property is owned by a life estate, you can still borrow against the property. However, you may face additional hurdles at the lender. First, bring in the appropriate documents establishing the life estate, such as your will or the deed to the property. The remainder owners will then need to be present and sign off on the loan as well.

Can someone in a life estate leave the property?

A life estate is where you leave the whole or part of your estate (such as a property, a sum of money, some investments or shareholdings) in the hands of your executor to give the benefit to a specified person (called the life tenant) for as long as that person lives, and then transfer the assets to other specified persons (called the remaindermen).