Life Estates: A Key Estate Planning Tool
Hi, I’m Oklahoma estate planning attorney Meg Prestidge and today I want to talk to you about the use of a tool in your estate planning called the life estate. This arrangement allows you to retain your interest in the property during your lifetime while identifying remaindermen to whom you wish the property to divest at your death. A life estate is simply a form of property ownership or interest that you identify, which can include minerals, your home, or other real estate.
A life estate grants the life tenant, who is you if you’re creating the life estate, the right to use, occupy, and benefit from the property throughout your life. Upon your death, the property automatically passes to the individuals or entities you’ve designated as the remaindermen. This arrangement offers the advantage of transferring property without the need for probate, making it a straightforward option for many estate plans.
Challenges of Life Estates
However, there are challenges associated with life estates. If you decide later in life to sell your interest in the property, it can be quite difficult unless all the remaindermen agree. This is because potential buyers may be hesitant to purchase a property that is subject to your life interest, knowing that the property will eventually pass to the remaindermen upon your death.
Essentially, the issue lies in getting all of the remaindermen on board with the sale. This can be a complex process, particularly if the remaindermen have differing opinions or interests. Despite these challenges, a life estate remains just one of several effective tools available for estate planning.
Get More Information About Life Estates
If you’d like to learn more about life estates and how they might fit into your estate planning strategy, I invite you to contact me. You can reach Wirth Law Office – Oklahoma City through theOklahomaCityAttorney.com or call me at 405-888-5400 for a low-cost consultation. Don’t hesitate to take the next step in securing your estate planning needs!
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