Creating a Life Estate

• 1
  Consult a state law book to determine which rule applies.books image by MAXFX from Fotolia.com
  
  Determine which rule that your state follows on words of limitation. Do this by checking the codes in a state law book or on-line. The common law rule did not require any words of limitation because it was presumed that an estate that was granted was a life estate. If your state follows the common law rule then write the words "A grants an estate to B," to create a life estate.
  
  
• 2
  Draft your document with words of limitation to create a life estate.writing image by DBarby from Fotolia.com
  
  Draft words of limitation. Many states presume that an estate that is granted without words of limitation is a fee simple, which gives total right to the property. Words of limitation are words in the document that state that the estate that is granted is a life estate. In this type of jurisdiction, write, "A grants an estate to B for life."
  
  
• 3
  Designate a substitute person to take the life estate.writing image by Petro Feketa from Fotolia.com
  
  Prepare for contingencies. The person who receives the life estate may pass away before the grantor. If this happens, the life estate reverts to the grantor. But the grantor may have another person in mind to take the life estate. Here, she should write, "A to B for life, but if B passes away, then to C for life."
  
  
• 4
  You can include a prohibition against using your property as a bar.bar image by Dmitry Nikolaev from Fotolia.com
  
  Include conditions in your grant if you have strong feelings about how the property should be used. A devoutly religious person may not want the property turned into a drinking establishment. To accomplish this, write, "From A to B for life so long as the property is never used as a bar, tavern or drinking establishment."
  
  Conditions in grants of property and wills are almost always respected by the courts provided that the condition does not involve public use of the property. Courts have held that a will maker could condition an inheritance on the son marrying in the Jewish faith. So it is likely that a grant of a life estate conditioned on the son marrying inside the faith will be recognized as legal.
  
  
• 5
  The court creates an estate by operation of law.law courts image by Peter Helin from Fotolia.com
  
  The creation of an estate by operation of law is done through the courts. This occurs when the life estate holder passes away, the grantor is deceased and there is no contingent provision, but the estate holder has a wife. In this case, the court would order that the life estate goes to the wife.