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Interesting article, but doesn't say much on tax other than:

I guess valuing a life estate would depend on the age of the person acquiring an estate with someone older having, on average, less time left meaning it would revert quicker. But say on a property worth $500,000 that the life estate was worth $200,000 I think that would be a $200,000 capital...

Very clever. The granting of a life estate would be a CGT event however. The cost base for the CG would be based on the market value. The value would probably be less than the value of the property as it will revert back to the owner on their death. There may also be CGT issues when the life...