“Life Estate,” is a term that is commonly used in Estate Planning. Here at Gibson & Mullennix, we work to assist people with their estate planning and land transfer needs. Life Estates are used in Mississippi on a regular basis.
A life estate allows for a person to transfer property, but reserve their rights in the property before their death. A typical life estate deed would say from “A to B with A reserving a life estate in the property.” This simply means the property is transferred to B, but A will be able to keep their rights to use and enjoy the property until their death. Then, rather than transferring the property upon their death to their heirs the property goes to B or what’s known as the remainderman.
People commonly use this when they are leaving the property to a family member, but don’t want to simply deed it to them. Typically, the person with the life estate will be able to keep their property tax benefits as well if they keep a life estate rather than transferring the property.
Life Estates are a valuable estate planning tool that a number of lawyers use. Contact our office if you have questions about a life estate.