Life Estate Deeds
Help With Life Estate Deeds in Maryland
Comprehensive Deeds, LLC understands our clients have questions about life estate deeds for their Maryland properties. We want to educate you on this deed type to decide whether it is the right option for your needs. A life estate deed gives you a life estate interest in your home that allows you to continue to live in it during your lifetime. As you retain your estate, you are what is called a life tenant, and you name a beneficiary, called a remainderman, to receive your property when you die. More than one person can receive your property, but you must be careful when designating their ownership as either joint tenants or tenants in common.
Reasons You Need a Life Estate Deed
If the context for your life estate deed is estate planning, you will need the type referred to as a life estate deed with full powers. This type allows you to avoid probate, and you retain the power to reconvey, sell, or mortgage your property without having to notify the remainderman. You also will not need their consent if you choose to change the deed. For those who need a deed in conjunction with Medicaid planning, the other type of deed is a life estate deed without powers. By executing this deed type, you give up your exclusive power to reconvey, sell, or mortgage your property. You will also need consent from the remainderman to sell it.
Explore the Benefits of This Deed Type
Selecting a life estate deed allows you to retain your exclusive rights of changing your deed and selling or mortgaging your property without consent from the remainderman. As a life tenant, you continue to occupy your home as you see fit. A life estate deed without powers has a distinct benefit to our clients using it in conjunction with Medicaid planning. While it is considered a gift with applicable gift penalty rules, the gift penalty period for Medicaid ends or expires after five years. Once this period ends, your life estate value is no longer considered a countable asset for Medicaid purposes.
Let Our Qualified Attorney Help You
When drafting and executing either type of life estate deed, it is important to have an experienced and knowledgeable deeds attorney handle the process. Comprehensive Deeds, LLC has ample expertise in this area of legal documents. We will help you determine the best avenues for your property and complete the process in your best interests. Reach out to us for legal assistance in Baltimore County, Howard County, Annapolis, and other areas of Maryland.