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Does a Life Estate Override a Will? Understanding Property Rights and Inheritance

When planning an estate, individuals often use a life estate to ensure a seamless transfer of property. However, a common question arises: Does a life estate override a will? The short answer is yes—a life estate generally takes precedence over a will because it is a legally binding property transfer that occurs outside of probate.

What is a Life Estate?

A life estate is a legal arrangement in which an individual (the life tenant) has the right to live in or use a property for the duration of their life. Upon their death, ownership automatically transfers to the remainderman—the designated heir or beneficiary.

Key Features of a Life Estate:

• The life tenant cannot sell or mortgage the property without the remainderman’s consent.
• Ownership automatically transfers upon the life tenant’s death.
• Avoids probate, making property transitions smoother.

Does a Life Estate Override a Will?

Yes, a life estate typically supersedes any conflicting instructions in a will. Since the life estate deed establishes a future owner, the property is no longer considered part of the estate at the time of death. This means:

• The life tenant cannot bequeath the property to someone else in their will.
• A will cannot change a life estate beneficiary.
• Probate courts generally honor the life estate deed over will instructions.

Can a Life Estate Be Changed?

While a life estate limits an owner’s ability to alter property inheritance, it can be changed or revoked under specific conditions:

1. By Agreement – The life tenant and remainderman can agree to modify or terminate the life estate.
2. Through a Court Order – A court may intervene in cases of fraud or legal disputes.
3. By Selling the Property – The life tenant and remainderman can jointly sell the property, effectively dissolving the life estate.

Advantages of a Life Estate

• Avoids Probate – Property passes directly to the remainderman without court involvement.
• Provides Stability – Ensures the life tenant has a place to live.
• May Offer Tax Benefits – The property may receive a stepped-up basis, reducing capital gains taxes for the remainderman.

Potential Drawbacks

• Limits Flexibility – The life tenant cannot sell or change ownership easily.
• Potential for Disputes – Conflicts may arise between the life tenant and remainderman.
• Medicaid Implications – Life estates can affect Medicaid eligibility and estate recovery claims.

Conclusion

A life estate overrides a will when it comes to property distribution. If a property is placed in a life estate, the will cannot alter its predetermined transfer. If you need help navigating life estates, probate, or estate planning in Texas, The Lange Firm can provide expert legal guidance.