What is a life estate?
A life estate is a type of ownership interest in real estate. Most commonly the life estate is conferred by deed but may also be conferred in a will or trust. The typical scenario pertains to a parent who wants to “give the house to the kids” for estate and asset protection planning purposes, but retain control over the property. The parent transfers the real estate by deed to the children reserving a life estate for him or herself. The parent is…