3 May 2017
An estate pur autre vie is an estate based on some else’s life. When that person passes it means the interest is terminated.
An example of that would be a widow (Mrs.Jones) and a widower get together.
- Mrs. Jones moves into the new husband home.
- Mrs Jones wants to keep her home. She can either leave the home vacant or rent it out and collect rental income.
- Mrs. Jones decides to rent her home to Mrs. Smith.
- Mrs. Jones grants Mrs. Smith an estate pur autre vie. Meaning, Mrs. Smith can live in the rental property until the death of Mrs. Jones.
- Upon Mrs. Jones’ death, the goes back into her estate and Mrs. Smith must vacate the rental property.