I agree with @Anonymous_. The life tenant cannot sell the property without the consent of the remaindermen. That's because the remaindermen have an ownership interest even while the life tenant is alive. If the property is sold while the life tenant is alive, the remaindermen are entitled to a share of the proceeds. The amount of both the life tenant and the remaindermen's shares is determined according to IRS actuarial tables.
Since the life estate immediately terminates upon the death of the life tenant, it does not become part of the estate. The property passes to the remaindermen automatically. Hence, there is no need for probate. This is one of the advantages of a life estate deed.
There is no gift tax on transferring property through a life estate.
If the property is sold before the life tenant's death, the remaindermen do not receive a stepped-up cost basis.
If the property is sold after the life tenant's passing, the remaindermen do receive a stepped-up cost basis to the FMV on the date of the life tenant's passing.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
