Sole property owners in Bermuda often protect their spouses’ interest in the property by granting them a “life interest” in the home after the sole owner’s death.This happens most often where a husband is the sole owner of the property, and wills the property to his wife for her lifetime. The property then passes to a third party normally the couple’s children - on the death of the wife, whose life interest in the property dies with her.A giver of a life interest is known as “the grantor”, or sometimes “settlor”. The non-property owning party receiving a life interest is known as a “life tenant”. A life tenant has rights to either occupy the property or to collect rent on the property for the rest of her life.A life interest can be created by a document (called a “settlement”), or by will (called a “will trust”).The person who receives the property after the life tenant dies is called “the remainderman”, or “remaindermen”, if there is more than one. The remaindermen are often the children of the grantor.A life tenant cannot will the property as a legacy, as the right of life tenancy ends on the death of the life tenant.In theory a life tenant may sell the property but only for the period of the life tenant’s life. In practice, few purchasers would be interested in owning a property for an uncertain time period (ie until the life tenant’s death).There are some exceptions to the general rule that a life tenant cannot sell a greater interest in a property than for during her life. For example, remaindermen can agree to the outright sale of the property, and a court can order the outright sale of the property.If either exception applies, it is usual to purchase a replacement property with the sale proceeds, or for the proceeds to be invested and the life tenant paid income from the investment during her life.Once the life tenant dies, the replacement property or investment passes to the remaindermen.To protect the remaindermen’s interest in a property, the life tenant is under a duty not to intentionally or negligently cause harm to the property.Strangely, if a life tenant improves a property, the remaindermen can force the life tenant to restore the property back to its pre-improvement condition. The rule is rarely invoked and is based on a legal presumption that the grantor intended that the property be inherited by the remaindermen in its original condition.Another limitation on a life estate is the legal doctrine of waste, which prohibits life tenants from damaging or devaluing the land, as their ownership is technically only temporary.Granting a life interest represents a form of estate planning. The advantage for the grantor is that he ensures:n the life tenant has a home, or can collect the rent on the property; andn after the life tenant dies, the remaindermen get the property outright.Those considering granting a life interest in a Bermuda property would be wise to consult a Bermuda attorney. That is equally true for life tenants and remaindermen, who should be aware of their options and legal rights with respect to the property.Attorney Neil Molyneux is a member of the Property Practice Group at Appleby. A copy of this column is available at www.applebyglobal.com.This column should not be used as a substitute for professional legal advice. Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.