Does a Life Estate Override a Will?

Life estates have become popular tools in Arizona estate planning. They help people pass on their home or other real property to their families or other heirs while avoiding the probate process. However, as with any estate planning tool, it’s crucial to know how to structure life estates correctly and understand the complications they can cause.

For example, does a life estate override a will? You want a clear answer, so it’s smart to consult a Surprise, AZ, estate planning lawyer before you create a life estate so that all your wishes and preferences are respected and compliant with the law.

What Is a Life Estate?

A life estate is a type of interest in real property. A life estate is created by a legal instrument that provides a way to split ownership of real estate property over time. As the “life tenant,” you have the right to live in or use the property you designate when creating the life estate for as long as you live. When you die, ownership of the property automatically passes to the “remainderman” you choose (usually a child or other heir) without going through probate.

How Does a Life Estate Interact with a Will?

Once you create a life estate, it typically overrides anything in your will about that same property. That means you usually can’t leave the property to someone else in your will if you’ve already given away future ownership through a life estate. If there’s a conflict, the life estate takes priority because it goes into effect when you created it. By contrast, a will becomes effective only upon your death.

Benefits of Establishing a Life Estate in Arizona

Creating a life estate helps your heirs avoid probate, which can save them substantial time and money. A life estate also lets you stay in your home for life while knowing who will receive it afterward. It can be helpful for long-term planning, especially if you want to provide stability for family members or protect your home from certain claims against your estate.

Potential Drawbacks

One disadvantage of choosing a life estate property transfer is that it limits your control over the property. For example, you can’t sell it or refinance without the remainderman’s permission. The life estate may also restrict your options if you need to move or change your plans later. There can also be tax consequences or other issues if the remainderman runs into legal or financial trouble.

Alternatives to Life Estates

Depending on your needs, other estate planning tools might offer more flexibility than a life estate. For example, a revocable living trust can help you keep control of your property during your life while helping your heirs avoid probate later. A transfer-on-death deed is another option that allows your home to pass to a named person without involving the courts. An Arizona estate planning professional can help you find the best fit for your goals.

Consult an Arizona Estate Planning Attorney

At Pennington Law, PLLC, our experienced estate planning attorneys can help protect your legacy by building a comprehensive estate plan that safeguards your wealth, provides for your beneficiaries, and supports your needs as you age.

Everyone’s estate planning needs are different, and our extensive experience with many legal tools helps us create individualized plans suited to your specific goals. We’ve earned widespread praise from our clients for our commitment to excellence and have multiple locations in the West Valley to serve you. Call now or complete our contact form for a free consultation.