A legal instrument used in property planning in the state of Georgia allows an individual to transfer ownership of real estate while retaining the right to live on the property for the remainder of their life. This arrangement involves two parties: the “life tenant,” who retains the right to use the property during their lifetime, and the “remainderman,” who receives full ownership of the property upon the life tenant’s death. For example, a parent could transfer their home to their child via this instrument, continuing to reside in the home until their passing, at which point the child gains full ownership.
This method of property transfer offers several advantages, including the avoidance of probate upon the life tenant’s death, which can save time and expense for the heirs. It can also provide a means to protect the property from certain creditors of the remainderman, although the life tenant’s creditors may still have claims against the life estate. Historically, this type of estate planning has been employed to ensure continued housing for a spouse or other family member, while guaranteeing eventual transfer to subsequent generations.
