Prescott AZ Real Estate Conventional Life Estates
April 24th, 2007
As an owner of Prescott AZ real estate, you have a specific level of ownership interest in the property. Your estate determines what you can and are allowed do with the property.
With a life estate we are introduced to the idea of having ownership rights to a property for the duration of a person’s life.
Life Estates
Although life estates are temporary by nature, because they will end at the death of a person, while it is in effect it is treated as complete ownership. Life estates are not inheritable. They are granted to a person and cannot be passed on by that person to another.
There are two types of life estates that exist: Conventional life estates and Legal life estates. In this article we will discuss the prior.
Conventional life estates
Conventional life estates, come into existance through the action of a grantor through the means of a will, deed or trust. Within the conventional life estate there is a distinction of two kinds (a) ordinary and (2) pur autre vie [for the life of another].
Ordinary
If this life estate is ordinary it is based on the life tenant’s life (owner), this is considered an ordinary life estate. As long as the owner is alive, the life estate exists.
A gives B an ordinary life estate. B is the life estate tenant (owner) of the property and the life estate will continue to exist as long as B is alive.
Pur autre vie
If the life estate is based on the life of another, it is referred to as a pur autre vie life estate.
A gives B a life estate as long as C is alive. B is the life tenant (owner) and will remain so as long as C is alive.
Life Tenant
The life tenant really has true ownership interest and may gain income and profits from the property. In addition, the life tenant can lease, sell or mortgage their life estate.
Entry Filed under: Prescott Arizona AZ Real Estate Market
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