The owner (s), also known as the “Grantor (s)”, sign a new deed, which re-deeds the real property back to himself. The person who holds the “life estate” has ownership of the property for the rest of their life. This article focuses primarily on traditional life estate deeds. But when the life tenant dies, the remainder interest in the property goes to the beneficiary, also known as the remainderman. We are not a law firm, or a substitute for an attorney or law firm. The life estate deed will contain a clause in which it gives the owner the right to sell or transfer the real estate property without needing any consent. The same party may serve in multiple roles. Sally has a life estate in the property. Life estate deeds are designed to transfer the property at death without losing the ability to use the property during life. A life estate is a form of joint ownership that allows one person to remain in a house until his or her death, when it passes to the other owner. In a life estate deed, however, the grantor and the remainder beneficiary are viewed as co-owners of the property. As part of the deed, Mom keeps what is called a life estate, which means she can continue to live on and use the property for the rest of her life. A life estate deed is also a form of co-ownership. The Grantor shall have full ownership, possession and use of the property, as well as the rents, revenues and profits generated by the property during the term of the Grantor's natural life. Even though the remainder beneficiaries do not have possessory rights to use the property while the life tenant is still alive, the life tenant cannot convey or mortgage the property without the consent of the remainder beneficiaries. For example, if a mother buys a home for $50,000 in 1965 and the deed is such that mother retains a life estate and her son is given a remainder interest, mother passes away in 2002 when the property is worth $250,000, and in 2017 the son sells the property for $300,000. A big advantage of retaining a life estate in property that is … A life estate deed involves the transfer of ownership from your name to someone else. The short answer is that a life estate is ownership of property for the lifetime of that person. The deed is typically recorded with the county government office that handles real estate records. There are many benefits to creating a life estate deed, sometimes called a life estate trust: In addition to benefits, there are some drawbacks that should be considered before deciding on this course. You can sell or give your home to your children, but keep the right to live in or control the home until you die. “Life Estate” is a legal term that describes a kind of joint ownership in real estate. A Lady Bird Deed (also known as an "enhanced life estate deed") is an alternative way to transfer ownership of property. The interest that passes at the owner’s death is called a remainder or remainder interest. A life estate deed grants an individual the right to own the property during their lifetime. 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. Read up on the basics of the rights and duties of a remainderman. Life Estate Deed vs Enhanced Life Estate Deed Also known as a Lady Bird Deed, the Enhanced Life Estate Deed is a special type of deed recognized only in Florida and two other states (Michigan and Texas). 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