As you plan for the future, a life estate deed may become an important consideration for you and your family. Consider these facts regarding Maryland Life Estate Deeds.
- The Life Estate Deed creates two separate tenancies. The Life Tenant has absolute and exclusive right to the use of the property while alive. The Remainderman automatically becomes the owner upon the death of the Life Tenant.
- A Maryland Life Estate Deed avoids Probate. The property immediately passes (by operation of the law) to the Remainderman upon the death of the Life Tenant.
- A Life Estate Deed is simple and inexpensive to set up.
- The Life Tenant retains all rights of possession and ownership.
- Property is not subject to debts or claims of Remainderman while Life Tenant is alive.
- There are two types of Life Estate Deeds; one with “powers” and one without “powers.”
- When the Life Tenant retains “powers”, he/she can sell or mortgage the property without the consent of the Remaindermen. Then the Life Tenant can, in essence, divest the Remaindermen of their interest.
- When the Life Tenant does not have “powers”, the Remainderman must join in any transfer and has a “vested” interest.
- A Medicaid lien can be avoided when a Life Estate Deed without powers is used. Consult a Maryland Real Estate Attorney for details!
- There can be multiple Life Tenants and Remaindermen.
For more information on Maryland Life Estate Deeds, contact Jack Cooper Law today!
Trust Jack Cooper Law for Your Legal and Real Estate Needs
If you are considering a Maryland Life Estate Deed, trust Jack Cooper, a Maryland Real Estate Attorney, for advice and professional assistance. Call Jack Cooper Law today at 410-465-5822!