The Benefits of Creating a Life Estate

Giving your home to a spouse or child can be much easier through a life estate, and it will guarantee that you can live in it for as long as you need it. It also has several other benefits that can simplify giving your home to another person.
The agreement also ensures that the heir will receive the home on the death of the original owner. This arrangement can give both parties peace and security.
The house owner retains control of the property for as long as they live. It gives them complete leeway to do what they want with it, including living in it or leasing it. Getting a mortgage on the property or selling it is only possible if the beneficiary agrees.
If the owner wants to make improvements or additions to the home, they are free to do so. The problem comes when they must get a second mortgage to do so. The remainderman would have to approve of it beforehand. Getting a loan or second mortgage before signing the life estate documents would be easier.
A life estate instrument (whether you use a will, trust, or deed) needs precise wording to accomplish the desired goals. Consulting with an estate planning lawyer ensures that your plans for transferring your home to your heirs are successful.