How does a Life Estate Deed work exactly?

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Icon Mini Profile marshawaite





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Post Posted: Fri Jan 16, 2009 11:55 am    Post subject: How does a Life Estate Deed work exactly?
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In 1988 my parents had a life estate deed on their home made up with I, the daughter as grantor. The home was free of a mortgage at that time. Now I have lived in the house since that time, and so have my parents. They now both have to go into a nursing home and are on institutional medicaid. I know medicaid cannot touch the house as long as they are alive but what about after they die? Can they take the house and use it in a estate recovery for medicaid?I know I cannot sell or rent it till after their death, because it can be considered as part of their income. I am from Wisconsin.
Icon Mini Profile jerry
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Post Posted: Sat Jan 17, 2009 1:31 am    Post subject:
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Hi marshawaite,

As far as I know, a lady bird deed or an enhanced life estate deed does not make your parents ineligible for Medicaid as long as they express their "intent to return" after being taken to nursing home. Even if they do not express their intent to return, the home may be considered as an exempt asset for Medicaid as long as you or a relative occupies it when they are not around.

You may check out the following link to know if a lady bird deed can cause medicaid penalties or not:
http://www.mortgagefit.com/texas/ladybirddeed-medicaid.html#31721

Thanks
SandyJean

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Post Posted: Sat May 29, 2010 3:19 pm    Post subject: What are my rights.
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I am planning to marry in the near future and the man I will marry has his home in a trust that his children are the successor trustees of. He plans to give me liftime living rights in a life estate. What are the benefits to me and will this really protect my rights to this home should he die before I do. Exactly what are my rights and what are his childrens rights?
Icon Mini Profile adonis
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Post Posted: Sun May 30, 2010 10:25 pm    Post subject:
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Hi Sandy,

As you will be having the life estate rights to the property, you will be able to stay in it for the whole of your life. Once you are dead, the life estate clause will become null and void.

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Joni

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Post Posted: Thu Jul 08, 2010 9:00 am    Post subject: Life Estate
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I want to draw up a Life Estate Deed, in Washington State, to put my son on the deed so he does have to file probate papers, upon my death. I have a mortgage on the house. Can this be done, without the mortgage company involved?
Icon Mini Profile smithsussane
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Post Posted: Thu Jul 08, 2010 11:22 pm    Post subject:
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Hi Joni!

Welcome to forums!

I guess you are speaking about the Enhanced life estate deed or the Lady bird deed. As far as I know, this deed is not valid in Washington. So before using this deed to transfer the property, please contact an attorney and take his opinion.

Feel free to ask if you've further queries.

Sussane
belle.elegant

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Post Posted: Tue Jul 05, 2011 9:57 am    Post subject: life estate in pa
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my mother left me a life estate to her unmortaged home. but she left the home to my daughter. i have not exercised my right to live in the home. my daughter has put the property up for sale and has a buyer, but now the title company is saying that because i have a 70k irs lien against me, that the estate is liable for that lien. This does not sound right to me since i only had a life estate to live there and did not inherite the property in the will. i thought a life estate prevented you from encumbering or mortgaging, or otherwise to a property.
Icon Mini Profile jameshogg
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Post Posted: Tue Jul 05, 2011 10:54 pm    Post subject:
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Hi belle,

If you're not the legal owner of the property, you won't be liable for the lien. You should contact an attorney and take his opinion in this matter.

Thanks
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