Do you know what is the correct life estate deed language to leave behind real estate for your loved ones after death? Read on for the complete answer.
Before we dive into the nitty gritty, let's dig up a plain English answer to the must-know question of "What is a life estate deed?"
Let's say you want to leave your home to your beloved son Dan after you pass away. By inking a life estate form, you are making this official:
"Okay Dan you can have my house... but only after I pass away. As long as I am alive and kicking, I get to stay in the house, choose who lives with me and even milk it for rent money. On the flip side, I can no longer sell or give the house to someone else (unless I have your consent)."
Since you're the home owner, this makes you the Grantor and your lucky son Dan becomes the Grantee (or Remainderman if you prefer ugly-sounding legal terms). So what's the good, bad and ugly with this deed?
For starters, this deed is your quick and easy ticket to avoid probate... a time-draining and money-gobbling legal process to sort and dish out the assets of someone who has passed away. It's always good news when your hard-earned property goes straight to your loved ones instead lining the fat pockets of lawyers.
The bad is that once you sign this deed, it's pretty much a done deal - You can't sell or give the property to someone else without your Grantee's permission. For a non-binding deed that allows you to change your mind later on, Click here for our Beneficiary Deed instead.
*Make sure this life estate deed language complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
This Deed is made on this day of _______________, 20__, between the Grantor _________________________ of address
and the Grantee _________________________ of address
WITNESSETH, That the Grantor, for good and valuable consideration paid by the Grantee, the receipt of which is hereby acknowledged, does grant, sell and convey unto the said Grantee, all the rights, title, interest, claim or demand that the Grantor may have in the following described real property:
EXPRESSLY RESERVING Life Estate in the above described property unto the Grantor and its assigns. 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.
Upon the expiration of the Grantor's natural life, the ownership, possession, use, rents, revenues and profits of the above described property shall revert to the Grantee.
EXECUTED this day of _______________, 20__.
Grantor Name: _________________________
Grantor Signature: _________________________
STATE OF _________________________
COUNTY OF _________________________
On this day, personally appeared before me, _________________________, to me known to be the person(s) described in and who executed the within instrument, and acknowledged that he/she signed the same as his/her voluntary act and deed, for the uses and purposes therein mentioned.
Witness my hand and official seal hereto affixed on this day of _______________, 20__.
Notary's Public Signature: _________________________
My commission expires _______________.