A legal arrangement grants an individual the right to reside in a property for the duration of their life. Upon their death, ownership transfers to another designated party, the remainderman. For example, an elderly parent might transfer their home to their child, retaining the right to live there until they pass away. The child, as the remainderman, doesn’t have full ownership until the parent’s death.
This arrangement can serve multiple purposes, including estate planning, avoiding probate, and securing long-term housing. Historically, such agreements provided a mechanism for elderly individuals to remain in their homes while simplifying inheritance for future generations. The benefit lies in maintaining a sense of security and control over one’s living situation while planning for the eventual transfer of assets.
