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Life Estate

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daydrmr

Guest
What is the name of your state? California

What exactly does the term "life estate" mean in a will?

I appologize if the question has been asked and answered...
I did try to find it.

Thank You
 


I AM ALWAYS LIABLE

Senior Member
daydrmr said:
What is the name of your state? California

What exactly does the term "life estate" mean in a will?

I appologize if the question has been asked and answered...
I did try to find it.

Thank You
My response:

A "life estate" (Ca Civil § 761(2)) is an interest in real property measured by the life of a person or persons. The measuring life may be the person owning the life estate or someone else. Life estates are followed by some form of future interest after the life of the measuring person.

Although recognized by statute (Ca Civil §§ 761, 765 & 766), life estates are seldom used. They were traditionally created as an estate planning tool so that, after the estate holder's death, the surviving spouse and/or children would have the use and benefit of real property. However, trusts and other more sophisticated estate planning devices have supplanted their use; and thus, arms'-length purchase transactions in California rarely, if ever, involve a life estate.

With a Life Estate, there is no change in ownership when the transferor reserves a life estate. [Ca Rev & Tax § 62(e); 18 Ca Adc § 462.060(a); see Leckie v. County of Orange (1998) 65 Cal.App.4th 334, 338, 76 Cal.Rptr.2d 426, 428] By such a transfer, the transferee only receives a present interest in the property, and beneficial use of the property until death of the transferee, at which time, the property ownership reverts back to the transferor's Estate.

IAAL
 
Last edited:

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