What is a life estate deed?
With a life estate deed, the property ownership is divided into two parts: the life estate holder and the remainder holder. The life estate holder has the sole and exclusive use and benefit of the property during his lifetime. He can live at the property or rent it out and collect the rent. However, the life estate holder is also obligated to pay the mortgage, taxes, maintenance and insurance. Upon the death of the life estate holder, the property will automatically go to the remainder holder. No probate is required, the remainder holder simply records a copy of the life estate holder’s death certificate in the public records. While the life estate holder and the remainder holder are both still alive, the property cannot be sold or refinanced without both of their signatures.
