A legal arrangement concerning property ownership in the state, it divides rights into present and future interests. One individual, the life tenant, possesses the right to use and live on the property for the duration of their life. Upon their death, ownership automatically transfers to another party, known as the remainderman. For example, a parent might grant themselves a right to reside in their home for their lifetime, while designating their child as the individual who will inherit the property after the parent’s passing.
This type of arrangement offers several advantages, including potential avoidance of probate upon the life tenant’s death, simplifying the transfer of property. It can be a useful tool in estate planning, allowing individuals to retain control over their assets during their lifetime while ensuring a smooth transition to their heirs. Historically, it has been utilized to provide security for surviving spouses or to manage property across generations.
