When that person passes away, the property is transferred automatically to those who have a remainder interest in it. Life estates have some significant benefits for estate planning. Life estates ...

Upon your death, full ownership of the property automatically transfers to the individual(s) who have the remainder interest in the property. Creating a life estate is generally straightforward.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert.

Both life tenants and remaindermen own a life estate property, but technical ownership is divided between present interest and future, or remainder interest. In other words, both parties are ...

This is referred to as the life estate. The second interest is referred to as the remainder interest, the remainder owner has a current ownership but cannot take possession until the life tenants die.

But let’s talk a bit about terminology. A “remainder interest” usually refers to an interest in real estate when a life estate is created. You would deed the property to an irrevocable trust for your ...

The child (or irrevocable trust) would then own what is called a remainder interest in the residence. The life estate allows the individual to continue to reside in the residence during the ...

Rich Americans can parlay their philanthropy into guaranteed income for life and tax savings. Charitable remainder trusts ... some assets from their taxable estate, but not have all of that ...

In the State of Washington, a life estate is a legal arrangement where a person, known as the “life tenant,” has the right to use and occupy a property for the duration of his or her life.

A split interest is where the present beneficiary of an asset is different from the remainder beneficiary. Split interest strategies include private annuities, life estates, term interest ...