Planning for the future in often means making tough decisions about your property. One option many Alamogordo families explore is a life estate — a legal arrangement that allows someone to live in and use a home for the rest of their life, with ownership automatically passing to another person after their death. This tool can help with estate planning, avoid probate, and even protect assets from creditors. But what happens if the life estate no longer serves its intended purpose? Whether due to changing family dynamics, legal concerns, or the need for more flexibility, removing someone from a life estate can be complex. This article explains the purpose of and how to remove someone from a life estate.
What is a Life Estate?
A life estate divides ownership of a home into two parts:
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Life Tenant: The person who holds the right to live in and use the property during their lifetime.
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Remainderman: The person (or people) who will automatically receive full ownership after the life tenant dies.
This arrangement is often recorded in a deed, clearly naming each party. During their lifetime, the life tenant maintains control over the home, including the right to live there, make improvements, and rent it out. However, they cannot sell or mortgage the property without the remainderman’s consent. Read more passing down real estate in our article, Inheriting a House in Alamogordo
What are Benefits of Creating a Life Estate?
Many Alamogordo residents create life estates as part of broader estate planning strategies for the following reasons:
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Avoiding Probate: Property automatically transfers to the remainderman without going through court.
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Maintaining Use: Life tenants keep full rights to live in their home.
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Asset Protection: The arrangement may shield the property from some creditors.
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Tax Efficiency: Beneficiaries may receive a step-up in basis, reducing capital gains taxes.
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Family Clarity: Ensures a smooth transition of ownership and helps reduce conflicts.
Disadvantages of Life Estates
Life estates are not without limitations. Once established, they can’t easily be changed or revoked. Problems can arise if:
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A remainderman faces financial or legal troubles (e.g., bankruptcy, divorce).
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The life tenant needs to sell the home or take out a loan.
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Family disagreements develop over maintenance or property use.
Because life estates are generally irrevocable, altering them requires careful planning — and often the cooperation of all parties involved.
Can You Remove Someone from a Life Estate?
Removing someone from a life estate is challenging but not always impossible. Here’s how an asset protection lawyer in Alamogordo might approach this situation:
1. All Parties Must Agree
The most straightforward way to remove or change a remainderman is if everyone involved agrees. This includes the life tenant and all named remaindermen. If just one person refuses, the change can’t legally be made unless a court intervenes — and that’s rare.
2. Testamentary Power of Appointment
If the life estate deed includes a Testamentary Power of Appointment, the life tenant may have the ability to change who inherits the property after their death. This does not allow them to remove the current remainderman during their lifetime, nor does it allow them to sell the home, but it does provide some future flexibility.
Important: This clause must be included at the time the life estate is created. If it’s not there, it can’t be added later.
3. Nominee Realty Trusts
Another option involves using a Nominee Realty Trust, which allows the property owner to retain some control through a revocable trust. With this type of trust:
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The trust holds legal title to the home.
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The grantor (original owner) can direct the trustee to change remaindermen if needed.
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Flexibility is built into the trust from the start.
This option needs to be carefully structured by a qualified asset protection lawyer in Alamogordo, especially if family dynamics might shift over time.
4. Court Action
In rare cases, a remainderman may seek to terminate a life tenant’s interest — usually due to serious misconduct like allowing the home to fall into disrepair, failing to pay property taxes, or violating terms of the life estate. However, this process is legal and complicated. Courts generally side with life tenants unless there’s clear evidence of neglect or abuse.
When Removing Someone May Be Necessary
Sometimes, a remainderman’s situation changes — for example, they may:
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Accumulate significant debt
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Become involved in a lawsuit
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Go through a contentious divorce
In these cases, their share of the property could be at risk of seizure. Removing them (if possible) or using protective legal tools early on can help preserve the value of the home and prevent third-party claims. Learn more in our article, What Happens When Property Is Owned Jointly and an Owner Dies?
Choosing the Right Planning Tool for Your Situation
Life estates are powerful planning tools, but they’re not one-size-fits-all. They require careful thought, clear documentation, and ongoing review. Once created, your ability to change them is very limited unless specific flexibility was built into the documents at the start.
That’s why it’s so important to work with an experienced asset protection lawyer in Alamogordo. With the right legal guidance, you can design a plan that supports your goals — now and in the future — while protecting your home and family.
Speak with an Asset Protection Lawyer
If you’re considering a life estate or wondering how to change an existing one, request a discovery call with E-Law. We understand the unique needs of families in southern New Mexico and are here to help you navigate life’s legal decisions with confidence and care.
References: SmartAsset (Feb. 25, 2025) “What Is a Life Estate and How Does It Work?” and Yahoo! Finance (Dec. 16, 2021) “How to Remove Someone from a Life Estate”
