Life Estates
A life estate deed transfers ownership of your real property to a beneficiary upon your death but allows you to retain the right to live in and use the property for the rest of your life. In most states, you also retain your homestead exemption for as long as you live.
The potential hazard of a life estate deed is that you are giving up a significant degree of control and flexibility in exchange for probate avoidance and homestead protection. Once the deed has been signed, you lose the ability to sell, mortgage, or take out a reverse mortgage on the property without the beneficiary’s consent (remainderman).
