A "life estate" is an estate whose duration is limited to the life of an individual (usually the party holding the life estate) and a legal arrangement whereby the "life tenant" during his or her life retains use (the rights to rents and profits), possession of the property, and costs of maintaining the property. The life tenant cannot sell or waste the property without the consent of the "remaindermen." Remainderman is the legal term for the person who receives full ownership of the property upon the death of the life tenant.
We would like your feedback on this Personal Finance Frequently Asked Question.
