Life Estate Deeds: What They Are and Why You Need One
Oct. 4, 2022
A life estate deed is a legal document that allows you to give someone else ownership of your property during your lifetime, while retaining the right to live there yourself. You can also transfer a life interest to an individual in your Will or Trust, which would allow that individual the right to live in the property for the rest of their lives, and then when they pass away, the remaining interest in the property goes to other people you designate in your Will or Trust.
This can be a useful estate planning tool for people who want to leave their home to their loved ones but still have the ability to live in it themselves, or to allow their surviving spouse the right to live in the property for the rest of their lives, while ensuring that the property ultimately transfers to your children. In this article, we will discuss what a life estate deed is and why you might need one.
What is a life estate deed?
A life estate deed is a legal document that gives someone else ownership of your property during your lifetime. You retain the right to live in the property yourself, but the owner can do whatever they want with it after you die. This includes selling it, renting it out, or leaving it to their own heirs. The benefits of a life estate deed are that it allows you to plan for your own care in old age while still leaving your property to your loved ones. It can also help avoid probate, which is the legal process of distributing your property after you die.
People who want to leave their home to their children or grandchildren but still have the ability to live in it themselves may benefit from using a life estate deed. It can also be a useful tool for people who are concerned about their property being sold to pay for long-term care costs.
A life estate deed can also be used to ensure that your surviving spouse can use the property as their residence for the remainder of their lives, but after they pass away, the property will transfer to your children. This is particularly useful for blended families to ensure that property that was acquired before the marriage will stay in the family, while still providing your spouse with a place to live for the remainder of their lives.
Our Office Can Help
If you are considering using a life estate deed, you should speak to an experienced estate planning attorney to learn more about how it can be used to benefit you and your family. An attorney can also help you draft a life estate deed that meets your specific needs and goals. For more information, please Click here to Schedule a FREE Virtual Estate Planning Session.
PARENTING TIP:
Age-appropriate chores are a great way to teach kids responsibility and give them a sense of accomplishment. But it's important to make sure the chores you assign are developmentally appropriate. For example, a three-year-old probably isn't ready to take out the trash, but they can help with dusting or setting the table. As your child grows, you can gradually increase the difficulty of their chores. This will help them feel capable and competent, and it will give you a little extra help around the house!