Can you sell a house that is in a life estate?
Can Someone With a Life Estate Sell the Property? A life tenant cannot sell the property or take out a mortgage loan against it without the agreement of the remainderman. The reverse is also true: The remainderman cannot sell or mortgage the property during the lifetime of the life tenant.
What is a life estate deed in Massachusetts?
A life estate deed in Massachusetts is a deed in which two or more people each have ownership of real property, but they have it for different periods of time. Mary is the “life tenant” and she retains the exclusive right to enjoy and live in the residence until she passes away.
Does a life estate have right of survivorship?
A life estate is similar to a joint tenancy with rights of survivorship in that two or more people own the property and it passes to the survivors at death without the need for probate. Unlike other forms of deeds and most estate plans, a life estate cannot be undone or revoked later if you change your mind.
Can a life estate deed be challenged?
Can a life estate deed be contested? The answer is YES! The Life estate is an agreeable choice, particularly where there is an advantage in having the life estate revert back to its real owner (Grantor or Life Tenant).
What is the purpose of a life estate deed?
A life estate deed permits the property owner to have full use of their property until their death, at which point the ownership of the property is automatically transferred to the beneficiary.
What are the pros and cons of a life estate?
What are the pros and cons of life estates?
- Possible tax breaks for the life tenant.
- Reduced capital gains taxes for remainderman after death of life tenant.
- Capital gains taxes for remainderman if property sold while life tenant still alive.
- Remainderman’s financial problems can affect the life tenant.
How does a life estate deed work?
A life estate deed permits the property owner to have full use of their property until their death, at which point the ownership of the property is automatically transferred to the beneficiary. In the right situations, it can be a streamlined and easy way to transfer ownership.
What are the two types of life estates?
The two types of conventional life estate are the ordinary and the pur autre vie life estate. Ordinary life estate. An ordinary life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder).
Can a seller use a quitclaim deed in Massachusetts?
In Massachusetts, a seller will also use a quitclaim deed — the statutory quitclaim deed — to transfer real estate in an arm’s length sale to a buyer. This is a common, standard deed for Massachusetts home sales. With their statutory quitclaim covenants, these quitclaim deeds protect home buyers the way a warranty deed would in most other states.
Why do you need a life estate deed in Massachusetts?
Many Massachusetts homeowners use “life estate” deeds for different reasons. Some use them as a general estate planning tool. Others frequently use them as a way to “keep the nursing home from getting their house.”
What kind of deeds are used in Massachusetts?
Three major Massachusetts real estate deeds are commonly used: the quitclaim deed, the warranty deed, and the release deed. In contrast to most other places, Massachusetts home buyers receive their property through quitclaim deeds.
When do you need a warranty deed in Massachusetts?
Home buyers typically receive the same type of deed from a seller that the seller received when purchasing the property. Warranty deeds. In Massachusetts a warranty deed generally offers the greatest amount of protection to someone who is purchasing or receiving the title to a piece of real estate (the grantee).