Also known as: life interests
Written by attorneys · grounded in primary & secondary sources — see below
An interest in real or personal property measured by the duration of the holder's or another named person's life. The holder may use and enjoy the property but must preserve the principal for those entitled after the measuring life ends.
Lucas Lee conveys his vacation cabin to his daughter Lila and her children. Under the governing rule, Lila receives a life interest in the cabin. She may occupy it and collect any rents during her lifetime, but upon her death the children take the remainder in fee simple.
Leonard Lowe transfers shares of stock into a revocable trust naming himself trustee and reserving the right to all income for life. The arrangement gives Lowe a life interest in the trust property. He may receive dividends and vote the shares, yet the trust remains valid and not subject to the statute of wills.
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Luke Latham places his home in an irrevocable trust while retaining a life interest and the power to revoke. After his death his widow asserts rights in the trust assets. The court recognizes that the retained life interest does not automatically subject the trust to the statute of wills but may still affect the widow's elective share.
Kokichi Endo deeds his residence to his two sons without reserving a formal life estate yet continues to live on the property. The sons hold title subject to their father's continued possession. Creditors later attempt to reach the land, but the father's ongoing use illustrates the practical effect of a retained life interest.
No. A life tenant may use and enjoy the property and receive income but must preserve the corpus for the remaindermen. Pledging the principal as collateral risks permanent loss and violates the duty to protect future interests.
The spouse receives a dower-like life interest measured as if the decedent had held fee simple, yet that interest remains subordinate to any remainder or possibility of reverter that limited the original estate.
Supporting sources
The first taker receives a fee simple absolute and the gift over is void. The indefinite-failure language does not reduce the initial estate to a life interest.
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Yes. Absent a statute limiting trust purposes or duration, a settlor may validly create multiple successive equitable interests, including life interests followed by remainders, that equity will enforce.
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…had been involved in an accident, and that he carried no liability insurance. Kokichi Endo and Ume Endo, while reserving no life interests therein, continued to reside on the premises. On January 19, 1971, after a consolidated trial on the merits, judgment was entered in favor of Helen Sawada and against Kokichi Endo in the…