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| THE LIFE-ESTATE DEED Real estate, also called "real property" is usually held by right of a deed. And that deed can take many forms. Many people are using the deed as a means of passing a piece of real estate directly to heirs without the need for probate. You can do this in many ways; but a very popular one is to use the Life-Estate Deed, also sometimes called the Life-Right Deed. If you want to own the property during your life; but, you want it to pass immediately and directly to your son at the time of your death, you may retain a life estate and name the son as remainderman. If you retain a life estate, that means that you own the property as long as you live. But, when you die, the property immediately belongs to the son ... the remainderman. You conduct this operation through a deed. You do not use a will or a trust, (unless you want a trust to be the remainderman). Suppose you wanted your house to go to your daughter and to your grandson; but, you did not want your son-in-law to have any ownership of the property. You could:
In this case, you would own it as long as you live. Then, you rdaughter would own it as long as she lives. In the end, your grandson would own the property. Suppose you and your wife had married late in life and that each of you had children by previous marriages. Assume further that you both put a substantial part of your estate into a house, your residence. You might choose to take title in a "joint and concurrent life estate" and name several children as the remaindermen. With a "joint and concurrent life estate," you are both owners at this time ... and the survivor of you is the owner for his or her life. No one can "kick you out of your house." The children of each spouse do not receive their ownership until both spouses die. To leave real estate to our institution, you (the Grantor) might put these words in a deed, Grantor grants himself a life estate and names "The Foundation" as the remainderman." |
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