Legal Question in Real Estate Law in Nebraska

life estate property

can property in a life estate be used as collateral for a loan?

Asked on 4/15/08, 10:53 am

1 Answer from Attorneys

Duke Drouillard Drouillard Law, LLC

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.

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Answered on 4/15/08, 10:57 am

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