What is a life estate deed and how does it work?

A life estate deed is a legal document created in California that assigns the rights of a property to one or more people (known as life tenants) until a designated event or date occurs. This event is usually the death of the tenant or tenants, at which point the rights to the property would transfer to the remainder holder, usually the original owner of the property. When creating a life estate deed, the life tenants have the right to possess and use the property, rent or lease it, or sell it. As life tenants, they also have the responsibility for maintaining the property. Once the event has occurred, the right of possession transfers to the remainder holder. That person then has the right of ownership, possession, enjoyment, and profits of the property. Though life estate deeds are beneficial in that they ensure the property is passed to the correct person after a designated date or event, they are also irrevocable. This means that once it has been established, it is not possible to change, alter, or terminate. An experienced lawyer should be consulted if a change is desired. Life estate deeds are commonly used by older adults in California who want to pass their property to a specific person but would like the right to maintain possession while they are still alive. This way, they can enjoy their property until they pass away, at which point their wishes for the distribution of the property are already established.

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What is a life estate deed and how does it work?

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