What is a 'Life estate'?

A 'Life estate' refers to a specific type of property ownership that is limited to the duration of an individual's life. This means that the person who holds the life estate—referred to as the life tenant—has the right to use and benefit from the property for as long as they are alive. Once the life tenant passes away, the rights to the property do not revert to the life tenant's heirs but typically transfer to another individual or entity as specified in the property's deed or estate plan.

This concept is essential in real estate and estate planning because it allows the life tenant to enjoy the property while still ensuring that the ultimate ownership can pass to another designated individual, often referred to as the remainderman. It creates a balance between enjoying the property now and planning for future ownership.

The other options describe different types of property interests. An interest in property that lasts for a set number of years does not correspond to the definition of a life estate but rather describes a lease or a term tenancy. Ownership shared among multiple parties relates to joint ownership or tenants in common, which is distinct from the concept of a life estate as it does not revolve around an individual's lifespan. Lastly, a government-held interest in property refers to the state's right to