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You are here: Experts > Real Estate > Banking: U.S. > Using Banks and Bank Accounts > Life Estate
Expert: Alexander J. Hay - 10/19/2009
Question
What does this mean in a will: "And I give to my wife a life estate in all of my property, personal, real or otherwise, with full rights of ownership"?
I'm not quite sure what a life estate in bank accounts and investment funds means?
Answer
Essentially a life estate exists only in real property. It is an interest in property that vests immediately upon receipt, but terminates upon the death of the named person, in this case the wife. There is therefor a remainder interest that will be given to someone else. this is a handy way to protect assets form 3rd parties, but also against the wife. The wife will not be able ot sell the property without the consent of the remainder interest, and they will have few reasons to want to do this. So the wife gets the benefit of the property but no way to disinherit the deceased intended heirs.
In regards to other property the term has little or not meaning. but then again, I guess it would tie up cars and other property that has title issues, but I don't know how you would even show that on the title as a lien?????
this may involve an issue of state law that I do not understand. In Texas and a few other states that I am familiar with, this only pertains to real property.
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