Life Estate FAQs

Many homeowners wish to pass their home to their children when they die. One of the possible ways to do that is to set up a life estate.

When an owner of a home signs a life estate, they are essentially giving another person a remainderman interest in the ownership of their home. An elder law attorney or legal guardianship lawyer in New York can help explore whether this is the best way to help with your estate plan.

A life estate deed permits the original property owner to have full use of their property until they die, at which point the remainderman becomes the owner of the property. The original sole owner of the property becomes a “life tenant” in this arrangement. They can continue to live in the home for the remainder of their life and be responsible for making property tax and insurance payments.

Creating a life estate in New York might be a good option for those who want to simplify the estate planning process. With a life estate in place, there is no probate process upon the life tenant’s death. The property will automatically transfer to the remainderman. This can be a tremendous source of relief to the life tenant as they know exactly what will happen to their property upon their death. Creating a life estate with an elder law attorney is also a way to protect your home from Medicaid estate recovery. What that means is, if you receive Medicaid, the government may try to recover any costs from your estate one you pass away.

The life tenant gives up certain rights that they had as the sole owner. Life tenants need to get approval from the remainderman if they want to sell the home, lease the home, or get a mortgage. Even if the remainderman agrees to the sale of the house, they’ll get part of the money made from the sale.

These are all things you should take into consideration before choosing to set up a life estate plan in New York.

The opportunity to simply pass your home to your heirs via a life estate can be a good option. But there are drawbacks to life estates that should be considered before entering into this legally binding transaction.

An experienced elder law attorney or legal guardianship lawyer can help you decide if a life estate plan is right for your situation and draft any legal documents that are needed. Please call the Law Offices of Michael Camporeale, PC for a free consultation at (718) 475-9639.