A life estate creates a form of joint ownership between you and your intended beneficiary. It is sometimes used as an alternative to a will.
While choosing to create a life estate as part of your estate plan can be an effective means of avoiding probate, using this approach can have both “pros” and “cons”. These things should be carefully considered before choosing this method as an alternative to a will. If not, the result could have a long-lasting, even irreversible, consequences on you or your loved ones.
Do you know which of these are the cons and which are the pros to creating a life estate?
- Avoids probate
- Effect of Remainderman’s Financial problems
- Impact on getting a mortgage
- Capital gains tax on sale of property
- Qualifying for property tax exemptions
- Remainderman dying before life tenant
- Medicaid eligibility
We do, and it is all in this FREE 10 page guide. Find out if a life estate is right for you and your beneficiaries.
Pros and Cons of Life Estates
