Detailed Answer
Under Iowa law, a life estate grants a lifetime beneficiary (the life tenant) the right to possess, use, and derive income from real property for the duration of a measured life. The life tenant enjoys three primary rights:
- Possession: The life tenant may occupy the property.
- Use: The life tenant may rent, farm, or otherwise use the property.
- Profit: The life tenant may collect rents, harvest crops, or receive other income.
While holding a life estate, the life tenant owes a duty to avoid waste—actions that diminish the property’s value. The life tenant must maintain the property in reasonable condition, pay property taxes, and carry insurance. See Iowa Code chapter 633 for general rules on devises and life estates.
A remainder interest arises when a will names a remainderman. The remainder interest is a future fee-simple estate that becomes possessory when the life tenant dies. Iowa law recognizes two types of remainders:
- Vested Remainder: The remainderman is certain and no conditions must occur beyond the life tenant’s death.
- Contingent Remainder: The remainderman’s interest depends on a condition or on a future event (for example, “then to Sam if he graduates college”).
Example: A will states, “I devise Blackacre to Mary for life, then to John.” Mary holds a life estate and must pay taxes and maintain Blackacre. John holds a vested remainder and acquires full ownership when Mary passes away.
Helpful Hints
- Carefully review the will’s language to identify the life tenant and remainderman.
- Check if the remainder interest is vested or contingent to understand any conditions.
- Maintain the property: pay taxes, handle repairs, and carry adequate insurance.
- Avoid waste: do not significantly alter or damage the property’s value.
- Consider documenting major improvements or expenses to aid accounting at the end of the life estate.
- Consult an Iowa probate or real estate attorney for guidance tailored to your situation.
- Research Iowa statutes at the Iowa Legislature’s website: legis.iowa.gov.