A life estate is established when a parent transfers title to his or her home or farm to his or her children, but reserves the right to live in the house for the remainder of the parent’s life. In legal terms, the parent is known as the “life tenant”. The children are the “remainderpersons”, i.e. the persons entitled to inherit the entire property upon the death of the life tenant. The life tenant pays the property taxes, insurance and upkeep, and is entitled to any income generated by the property.