Life Estate

Life estates usually provide that a real property interest will be vested in an individual for the life of that individual.  It can, however, be provided to a party during the life of another party.  Upon the death of the party identified, the "remainder" interest reverts to the Grantee, the Grantee's heirs or another designated party.  Thus, a life estate is a partial and temporary interest in real property.

Appraisers are called upon to value partial and temporary interests in real property like life estates.  Actuarial studies are often used as a basis for the determination the probable duration of the income stream that could be derived from the temporary ownership interest.  Establishing the present value of the income stream provides an indication of value via the income approach.

The sales approach is also used to arrive at a value of the partial interest in the real property, assuming there is a sufficient quality and quantity of data on similar sales.

Life estates can be complex, and it is important to consult an attorney if you have acquired and interest of this type or if you are anticipating granting an interest of this type to someone.  

Contact us with your questions or concerns regarding the appraisal of life estates or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.