life estate property
can property in a life estate be used as collateral for a loan?
1 Answer from Attorneys
Re: life estate property
Yes, it may be used as collateral for a loan by either the person holding the life estate or the person(s) holding the remainder interest. Some lenders may not accept a life estate as collateral without the additional security of life insurance on the life estate owner. That is because the life estate terminates on the death of the owner and has zero value at that point.