By Nathan Vinson, attorney
Life estates have long been an efficient and simple succession planning device for those who want to leave their homes to loved ones when they die.
Here is a basic illustration of how it works: Mom has survived Dad and owns her house outright. She still lives in the home, which has a value of $300,000. Mom wants to leave the home to her Son at her death. So, Mom gives her house to the Son (the “remainder interest”) and reserves the right to live in the home during her life (the “life estate”).