The trust owner needs to be careful in who they choose as a trustee, as according to the arrangement, they will own all the money and property in the trust. If you remarry, there can be issues. Probate may still be necessary.
Can life interest be transferred?
In a life interest, however, you can transfer the estate to a person for his lifetime after which the property gets vested in the next generation or as defined in the will or deed. Such person can enjoy the property as the owner but he cannot transfer it to someone else.
How is the interest on a life estate measured?
One interest is measured based on the owner’s lifetime and is called a life estate. The interest that passes at the owner’s death is called a remainder or remainder interest. The life estate and remainder interest are then transferred to different owners. There are three categories of owners:
How is a Lady Bird deed different from a life estate deed?
Life Estate Deeds and Lady Bird Deeds. Like a traditional life estate deed, a lady bird deed avoids probate on the death of the life tenant. But unlike a traditional life estate deed, the life tenant may freely deal with the property during his or her lifetime without the remainder beneficiary’s involvement.
What happens to Al’s interest in the life estate?
As soon as Al dies, the life estate interest merges with Bill’s remainder, and Bill has a fee simple title. An advantage of such a transfer is that it makes the use of a will unnecessary and eliminates the need to probate the asset.
What happens to Bill’s interest in a life estate?
Al keeps a life estate and Bill receives a vested fee simple remainder. As soon as Al dies, the life estate interest merges with Bill’s remainder, and Bill has a fee simple title. An advantage of such a transfer is that it makes the use of a will unnecessary and eliminates the need to probate the asset.
