When it comes time to plan your estate, there are many way to pass on real estate to avoid paying costly expenses. One transfer method with tax advantages that may work for some folks is known as the estate deed. Essentially, an estate deed allows you to transfer your home to beneficiaries but still live there and avoid estate taxes and the probate process.
When you create a life estate, you will own the property along with whomever you designate as a beneficiary. The person living in the home is known as the “life tenant” and has exclusive rights to the property during his or her lifetime. The life tenant can be one person or individuals with joint tenancy, like a husband and wife. It is important to note that the life tenant has the responsibility to maintain the property, pay taxes, and retain insurance on the dwelling. Continue reading