When you plan your estate, you’ll have several options for what to do with your home and other real estate properties. Most people will use their will to leave property to their heirs, but there’s another way that allows your heir to avoid probate.
A “life estate” lets you retain ownership of your home while you’re alive and transfer ownership easily to your heir (or heirs) when you die.
How does it work?
A life estate is a form of joint ownership. You would transfer the title to your heir before you die, but the agreement lets you keep ownership of the home while you’re alive. Now referred to as the “life tenant,” you can live in the home, and you keep full legal ownership of the home. You can rent it out or make improvements to the home as you see fit.
What you can’t do is sell or mortgage the home – at least not without your heir’s consent.
Do you have questions about life estates? Call the experts at Foote Title Group! We’d be happy to tell you more about how life estates work.