Wills, Estates & Probate

Life Interest

Also known as: life estate, right to reside

In plain English

A right to use or benefit from an asset (often a house) for the rest of your life, after which it passes to someone else.

What it means

A life interest gives a person (the life tenant) the right to use or receive income from an asset during their lifetime, while ownership ultimately passes to other beneficiaries (the remaindermen) on their death. It is commonly used in wills to allow a surviving spouse to live in the family home while preserving the asset for children. Life interests carry obligations, such as maintaining the property and paying rates. A simpler 'right to reside' is sometimes used as an alternative across Australian jurisdictions.

How it's used

His will gave his second wife a life interest in the home, with the property passing to his children after her death.

Dealing with life interest in real life?

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