Estate planning can encompass many areas and can involve the execution of many different methods. While the last will and testament is an integral part of an estate plan, it should be viewed as just the beginning of a complete plan. When it comes to an estate, the family home often stands as one of the most valuable assets. Read on to find out about an estate planning method of dealing expeditiously with real estate: the life estate deed.
Probate, Assets, and Real Estate
In many cases, probate court deals with the real estate left behind by a loved one. If there is a surviving spouse, the spouse usually gets the home or at least the majority ownership of it. That is the case even if the spouse was not listed on the deed. If they are on the deed, the home is automatically owned by them after their spouse's death. Unfortunately, leaving real estate to your spouse or to anyone else using this method is cumbersome and time-consuming. Probate court can take months to be complete, and appraisals and other costs associated with inheriting real estate must be borne by the estate and the survivors.
Leaving Probate out of the Process
You may have heard about "avoiding probate" but that term is a bit of a misnomer. You cannot avoid having to deal with probate unless your estate is below the value cut-off in your state. What people really mean by avoiding probate is that you can use other means of addressing property that keeps that asset out of probate. Real estate is a perfect example of that effort. Any time you can keep an asset away from the probate court, it can be dealt with easier, quicker, and without having to meet probate's rules. Life estate deeds and other means of keeping property out of probate court are perfectly legal and recognized as such everywhere. You should, however, consult with a local estate planning lawyer to find out what the laws are in your state.
What Is a Life Estate Deed?
All homes have deeds, even if they still have a mortgage to pay. The deed contains the legal description of the home along with the rightful owners. You can have more than a single name on the deed, but a life estate is about more than just adding in the names of your children or others. A life estate deed gives the owner of the home, the life tenant, certain rights not afforded to the others listed, the remainderman. When you execute a life estate deed, the home stays out of probate and passes to the remainderman after the death of the life tenant. To find out more about how a life estate deed could help your loved ones cope with your estate, speak to an estate planning lawyer.
To learn more, visit a site like https://www.linskylaw.com.
