What Is a Life Estate in Texas
A life estate in Texas is a type of property ownership where one person (called the life tenant) is granted the right to use and possess a piece of real estate for the duration of their life. After the life tenant passes away, the property automatically transfers to another person, known as the remainderman.
Unlike full ownership, a life estate is limited in duration to a single lifetime. These arrangements are often used in Texas estate planning to preserve property, avoid probate, and clearly define who inherits real estate.
How Does a Life Estate Work?
A life estate is most commonly granted for the life of the grantee. The grantee receives a possessory interest in the estate until the death of the measuring life. At that time, the interest reverts back to either the original grantor or to a third party, called a remainderman.
In Texas, no particular or specific words are required to create a life estate, as long as there is clear intent that a life estate is to be created. Common phrases indicating the creation of a life estate include “for life” or “until his/her death.” Due to the nature of a life estate, a life
tenant has certain rights and duties unique to this form of ownership.
An experienced estate planning attorney can help structure a life estate to fit your specific goals and protect your property rights.
Rights of a Life Tenant
A life tenant in Texas has the following rights:
- The right to possession of the property: Even though a life tenant is not the only party who has an interest in the property, the life tenant has the exclusive right to possession, management, and control of the property.
- The right to all rents and profits during possession: If the property produces income, the life tenant has the exclusive right to it. This includes royalties from an oil and gas well if a producing well was in existence at the time the life estate was granted.
- The right to sell, lease, mortgage, or otherwise alienate the life estate in the property. This right is still limited by the measuring life. For example, a life tenant may lease the property for the duration of the measuring life only.
- The right to invoke Texas homestead law, If applicable.
Duties of a Life Tenant
While in possession of the land, a life tenant owes the following duties to future interest holders:
- The duty to pay ordinary taxes on the land and interest on a mortgage: A life tenant has a duty to pay taxes to the extent the property produces income. A life tenant is also responsible for interest payments on the property’s mortgage, but not the principal.
- The duty not to commit waste: The most significant duty of a life tenant is that they may not use the property in such a way as to decrease the value of the property. In general, this requires that a life tenant exercise the ordinary care of a prudent person to preserve and protect the estate.
Who Can Benefit from a Life Estate?
Life estates are particularly useful for:
- Older adults wishing to stay in their home while planning for its transfer
- Widows or surviving spouses protecting housing rights
- Parents leaving real estate to adult children but retaining control
- Families with complicated inheritance needs or blended family structures
Creating a life estate can provide peace of mind, especially when used alongside other tools like a durable power of attorney or an advance directive.
Ready to Discuss Life Estates in Texas Real Estate?
Whether you’re looking to preserve a family home, avoid probate, or protect your rights as a property owner, a life estate may be the right solution. The attorneys at Nimmons & Fronterhouse assist clients throughout Houston, including Memorial, Spring Branch, Spring Valley, and the Heights, with smart and compassionate estate planning strategies.
Contact us today to speak with an experienced attorney about your options for life estates in Texas real estate.
