Rochester Estate Planning Attorney on Using a Life Estate Deed to Transfer Your Home to the Children
- Our office commonly does 6A Life Estate Deeds
- You transfer the home to your children and you keep life use so they can’t kick you out. You will still get the property tax exemption, star exemptions, senior exemptions, veterans exemptions.
- One of the major disadvantages of a life estate deed you have to understand is that if any of your children go bankrupt, that money is going to be paid to the bankruptcy trustee even though they don’t have the current ownership of it.
- What people will do if they have many kids, is transfer to the child least likely to go bankrupt and they sign an agreement that they would share the proceeds with the others when that happens.
- A way to avoid a bankruptcy scenario is to transfer it to an irrevocable living trust.