FAQ Friday: Life Estate Deeds
On Friday, July 14th, attorney Steven Berger discusses our firms recommendations on life estate deeds.
The first type of life estate deed includes powers acts like a transfer on death. This is the death of whomever owns the property. A related question would be whether or not a married couple should do a life estate deed to their children? No life estate deeds should be done when married. Life circumstances could change with the death of one spouse that would make a life estate deed unnecessary and complicated.
Another life estate is with powers for a single person. If this persons child is meant to have the house upon passing then that would be a good reason for a life estate deed.
If the life estate deed is meant to go to all of the children it can be complicated if there isn’t agreement upon whether it should be sold or if one of the children wishes to occupy it.
The third category is a life estate deed without power to sell. The main reason is for medicaid. The survivor may need to sell the house for care which can make this difficult for the survivor.
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