How to Transfer Property to a Life Estate
Life estate is a term that is used to designate the ownership of land for the duration of an individual's life. The owner of a life estate is called a "life tenant." Upon that person's death, the title of the land returns to the original owner. If the life tenant has a surviving spouse, the spouse is entitled to live in the property until death.
- Learn about the tax implications of your decision to create a life estate. Creating a life estate can affect an individual's Medicare eligibility and might also require that the life tenant pay considerable real estate taxes. Consult with an attorney or tax professional to see whether or not any of these situations would apply to you.
- Hire an experienced real estate attorney to draft a quitclaim deed on your behalf. The deed will contain the full name of the grantor and the grantee and a complete legal description of the property. Following the property description will be a clause listing the terms and conditions of the life estate. The clause will clearly state that the life tenant and their spouse have the full rights to the property until death.
- Have the deed notarized by signing it in front of a notary public. If two spouses are listed on the deed, both will need to appear before the notary to sign the document.
- Provide the grantee with a copy of the deed. If the grantee does not receive a copy of the deed, the deed is considered to be invalid.
- File the deed with your town clerk. You will need to pay a recording fee. The amount of the recording fee varies based on your city or county rates.