Contents
Is a life estate deed a good idea?
People typically consider a life estate deed because they like the idea of avoiding probate and/or they believe there is a chance that they might need to apply for Medicaid-covered long-term care in the future.
What is the holder of a life estate called?
In legal terms, it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person. The owner of a life estate is called a “life tenant”.
What are the rights of a remainderman?
A remainderman is a property law term that refers to the person who inherits or is entitled to inherit property upon the termination of the life estate of the former owner. That person to whom ownership of the property is transferred is the remainderman.
Who owns the home in a life estate?
life tenant
A life estate is property, usually a residence, that an individual owns and may use for the duration of their lifetime. This person, called the life tenant, shares ownership of the property with another person or persons, who will automatically receive the title to the property upon the death of the life tenant.
What do you need to know about a life estate deed?
A life estate deed is a legal document that changes the ownership of a piece of real property. The person who owns the real property (in this example, Mom) signs a deed that will pass the ownership of the property automatically upon her death to someone else, known as the “remainderman” (in this example, Son).
Who is the remainderman on a life estate deed?
A life estate deed is a transfer of the ownership of the real property that is the subject of the deed to one or more persons (the “remainderman”), while retaining ownership of a life estate in the property by the person(s) transferring the property (the “life tenant”).
What does it mean to have a life estate?
A life estate is something to consider during estate planning. When an owner of a home signs a life estate, they are in effect passing part of the ownership of a home to another person. This could be thought of as a way to pregift your home to your heirs while still retaining joint ownership.
What is a living deed?