What is a life estate?

A life estate is defined as an estate in real property that lasts for the duration of the life of a specified individual, known as the life tenant. This means that the individual who holds the life estate has the right to use and enjoy the property during their lifetime. Upon the death of the life tenant, the property then passes to another designated party, often referred to as the remainderman. This arrangement allows for the holder of the life estate to have control and use of the property without fully owning it, as the ownership interest will ultimately transfer to another party after their death.

The other options describe different types of interests in property that don’t align with the definition of a life estate. Variable interest terms refer to financial instruments or agreements that allow changes in interest rates and do not apply specifically to the nature of life estates. The concept of inheritance pertains more to the transfer of property through a will or estate plan rather than the temporary nature of a life estate. Lastly, an estate limited to a specific time frame is more reflective of a leasehold or similar arrangement, differing from the inherently personal and individual nature of a life estate, which is tied to a person’s life rather than a set duration.