What are the basics to a stepped up life estate deed?

Answer by  LegalEagle59 (19)

The owner deeds the property to you, but retains a life estate (i.e., the right to live in the property) until their death. You have a remainderman interest. When the grantor dies, you own the property outright. Your tax basis in the property is determined thru actuarial tables.

Answer by  tamarawilhite (17883)

A stepped up life estate deed allows someone to live in a home for the rest of their lives. The home is inherited by the heirs at a stepped up basis of market value of the property, instead of paying estate taxes on its current value minus parents' purchase value.

Answer by  CarlSCansino (464)

It's a variation of a deed that enables an individual to retain their homestead exemption, have the home exempt from Medicaid claims, enabling persons to receive the home upon death..

Answer by  patti (29325)

An Enhanced Life Estate Deed can help avoid probate, hasten the transfer of a property after death, allow the use of the fair market value of the property at the time of death to lower taxes,and more. An attorney is required to create a Life Estate Deed.