What is a life estate deed?

A life estate deed legally transfers the title of property to a designated party after the death of the original party. The original party is called the grantor or life tenant. The property-receiving party is defined in the document as the remainderman.

The life estate deed prevents real estate property from probate court by clearly stating the designation of ownership of the property. This is beneficial to anyone wishing to avoid estate taxes. The remainderman takes the property on at the value at the time of the death of the grantor, not when the life estate was established. The real estate deed must be registered with the Registry of Deeds that is appropriate for the location of the property.