Life Estate

What Does Life Estate Mean?

A life estate is an interest in real property granted to a person for the duration of their lifetime. Life estates are often transferred through trusts. They often work alongside other estate planning tools, including permanent life insurance, which can leave heirs with cash to cover taxes or upkeep on the property after the original owner dies.

Insuranceopedia Explains Life Estate

Life estates can involve land or real property and are often granted to children or relatives for use after the original owner’s death. When someone receives a life estate, they typically need to purchase insurance to cover risks associated with the property. Most life tenants buy a standard homeowners policy on the property, so it’s worth comparing the top homeowners insurance companies since they’ll be paying premiums for as long as they hold the life estate.