Life Estate Disputes: Who Really Owns the House?

Richard Montgomery on Oct 7, 2025

Dear Monty: My mom put her house in my name and kept a life estate on it. She moved out several years later into an assisted living facility. She now claims the house still belongs to her. Did her life estate end when she moved out, or is she the owner of the house?

Monty's Answer: Your question touches on a complex area of property law and family dynamics. A life estate is a legal arrangement where one person (the life tenant) retains the right to live in and use a property for their lifetime, while another person (the remainderman, in this case, you) holds the future ownership interest.

The fact that your mom moved into assisted living does not automatically end her life estate. Moving out doesn't equal forfeiture. Under most state laws, a life tenant retains rights even if they no longer physically occupy the property. However, some life estate deeds contain specific abandonment clauses that could create exceptions when someone moves to assisted living. This is why reviewing the original deed is critical.

Three Strategic Paths You Might Consider:

Option 1: Verify the Legal Status: Hire an elder law attorney to review the original life estate deed and confirm its current standing, including any abandonment clauses. An elder law attorney is better for seniors than a real estate attorney because they focus on the specific legal, financial and healthcare needs that arise with aging, including Medicaid planning, asset protection and incapacity planning, whereas a real estate attorney solely handles property transactions. Elder law attorneys provide comprehensive, long-term planning and advocacy for vulnerable older adults and their families, addressing issues a real estate lawyer doesn't. Pros: Provides clear, binding answers and protects you from future challenges. Cons: Legal fees and potential family tensions. Key Point: Unless your mom explicitly relinquished her rights, she likely still controls who lives there and whether it can be rented, along with any rental income.

Option 2: Negotiate a Mutual Agreement: If your mom no longer wants property responsibilities, dissolve the life estate through proper legal documentation, where she relinquishes her life estate interest. Pros: Simplifies future transactions and reduces disputes over upkeep, taxes, or sale decisions. Cons: Requires cooperation and may have tax implications if the property has appreciated. Tip: Consult a tax professional before signing to avoid capital gains issues or Medicaid eligibility problems.

Option 3: Maintain the Status Quo: Leave the arrangement as is. You'll take full ownership automatically upon her passing. Pros: No immediate costs and preserves Medicaid planning benefits if that was the original intent. Cons: Ongoing uncertainty and limitations on improvements or selling

Critical Considerations: While your mom moved out, she retains responsibility for property taxes, insurance and maintenance unless the deed specifies otherwise. She's also typically entitled to any rental income. These responsibilities and rights continue regardless of where she lives. If this life estate was created for Medicaid planning, dissolving it could affect her eligibility for benefits, another reason to consult professionals before making changes.

Final Thoughts: This situation blends legal, financial and emotional factors. Start with a calm conversation with your mom, then have an elder law attorney review the deed's specific language. The law will determine the technical answer, but how you handle it will determine the family outcome.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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