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Definition: Reserved Life Estate. From ConservationTools.org. The ownership of real estate can be divided into present and future interests. This division enables a landowner to convey land to a land trust or government with the owner retaining ownership during the owners lifetime or some other specified period.
A deed with a reserved life estate is used when you wish to both pass your real property to someone upon your death and also protect the property from nursing-home liens. This document may also make it possible for you to live in and maintain control of the property until your death.
The difference is that a life estate deed awards ownership interest in the real estate only for the life of the person awarded the life estate. The warranty deed actually transfers ownership of the real estate to that person and the person may sell the real estate or pass it own to heirs.
Upon the grantors death, the property transfers to the grantee named in the life estate deed and doesnt have to go through probate. If there is a conflict between the grantors will and the New York life estate deed, the deed will overrule the provisions of the will.
A life estate deed is a tool than can be used with estate planning. A life estate is a legal concept in real estate law that refers to the ownership of a property for the duration of a persons life, known as the life tenant.