Life Estate Details
A major benefit of a life estate deed is that it can be used to pass property upon the life tenant’s death without it being part of the life tenant’s estate.
As a result, the property does not have to go through probate.
Does a life estate have to go through probate?
It is a way to pass your home to your children without going through probate. If you own a home and the title is in your name alone at your death, it will have to go through probate. Probate is needed when you have assets titled in your name alone at your death. Keep in mind that having a Will does not avoid probate.
Is a life estate considered an inheritance?
In the United States, a life estate is typically used as a tool of an estate planning. A life estate can avoid probate and ensure that an intended heir will receive title to real property. For example, Al owns a home and desires that Bill inherit it after Al’s death.
What happens to a life estate after the person dies?
A life estate allows lifetime use of a home before it passes to the final beneficiaries. A “life estate” occurs when a person has a legal right to use property during life, but does not own the property outright. After the death of the life tenant, the property passes to the named beneficiaries, called “remaindermen.”
Who owns the property in a life estate?
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).