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How is remainder interest calculated in a life estate?

A remainder interest is the right to use, possess, or enjoy property when the prior interest (term or life) ends. Mathematically, the value of a remainder interest is found by subtracting the present value of the prior interest from the entire fair market value of the property.

What is a life estate interest in Texas?

A Life Estate is a kind of joint ownership where one partythe life tenanthas the right to occupy the house for the rest of their life and the other partythe beneficiary or remainder ownertakes possession immediately upon the life tenants death.

What is the difference between a remainder interest and a reversion?

Reversion and remainder are both types of future interests for a property. Reversion is when the original grantor of the original conveyance retains the right to future possession of the property. Remainder is when that future interest is transferred to someone other than the original grantor.

What is a life estate in Arkansas?

A Life Estate is an express right to possess and/or use real property for the remainder of your life and it can be a great tool to ensure your land or home go to the right people after you are gone.

How is remainder interest calculated in a life estate?

A remainder interest is the right to use, possess, or enjoy property when the prior interest (term or life) ends. Mathematically, the value of a remainder interest is found by subtracting the present value of the prior interest from the entire fair market value of the property.

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