A life estate is a legal arrangement in which a person owns immovable property, such as a home or land, for the duration of their life. The owner of a life estate is called a "life tenant," and they have the right to enjoy certain benefits of ownership of the property, such as income derived from rent or other uses of the property and the right of occupation, during their possession. Upon the life tenants death, the property rights may revert to the original owner or to another person, known as the "remainderman". The remainderman has an ownership interest but cannot take possession until the life tenants death.

Life estates are often used in estate planning to avoid probate and ensure that an intended heir will receive title to real property. For example, a person who owns a home and desires that their child inherit it after their death can transfer title to the home to the child and retain a life estate in the home. The child receives a vested fee simple remainder, and the parent keeps a life estate.

Life estates can be created for any type of real property, including land and anything attached to the land. They can also be used to establish an income stream, where the estate consists of money invested in income-producing instruments, such as bonds, oil and gas leases, real estate investment trusts (REITs), and other similar investments.

While life estates can be helpful in some situations, they can also create problems when things get complicated. For example, the life tenant cannot sell the property or get a mortgage on it without the agreement of the remainderman. Additionally, a life estate cannot be undone easily, so it should only be established with the full understanding of the homeowner.