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What is the remainder of an estate?

A remainder is a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years. It is created by the use of the phrase then to or similar language.

What is the downside of a life estate?

In spite of these uses, life estates have limitations. The life tenant is responsible for property taxes, maintenance, and insurance. Also, they cannot sell or mortgage the property without the remaindermans consent.

What is a remainder in a life estate?

In a Life Estate, one individual, the life tenant, enters into an agreement allowing a second person, known as the remainderman, to gain possession of their property after death.

What happens when someone dies with a life estate?

Upon the life tenants death, the life estate is terminated and the heirs inherit the assets of the life estate. The inheritance rights of the heirs are predetermined by the terms of the life estate agreement.