What type of estate is created when a grantor reserves the power to sell or convey property during their lifetime?

When a grantor reserves the power to sell or convey property during their lifetime, it creates a specific type of estate known as a Life Estate with Powers of Disposition. This arrangement allows the life tenant to enjoy the use and benefits of the property during their lifetime while retaining the authority to make decisions regarding the property's future, including the ability to sell or lease it.

In this context, the life tenant's rights are expanded beyond mere occupancy; they are empowered to engage in transactions that affect the property's ownership. This flexibility distinguishes it from a traditional life estate without such powers, where the life tenant enjoys the property but cannot transfer ownership or encumber it.

Understanding this concept is essential for anyone involved in real estate, as it affects how property rights are managed and transferred. The life estate with powers of disposition allows for greater fluidity in property rights and is often utilized in estate planning to achieve specific financial or familial goals.