The parties listed in a life estate deed can initiate a revocation as the lawful owners of the property, according to FinWeb.com. Another option is to determine the parties committed fraud or were not in their sound legal mind, although this is difficult to prove and legal costs are high.Continue Reading
A life estate deed helps people avoid probate, keep the right to use and profit from their property for their lifetime, keep the right to sell their property at any time, avoid making gifts that could be subject to federal gift tax, and avoid jeopardizing their eligibility for Medicaid, says Nolo. In some states, these deeds help prevent the property from being sold after the homeowners death, which would ordinarily happen to repay the cost of Medicaid benefits.
These deeds are called enhanced life estate deeds because they have more benefits than a standard life estate deed. With a regular life estate deed, an individual inherits property while the original owner keeps ownership of the property for his lifetime, but with restrictions. He would not have the right to mortgage or sell the property, and he might be liable to the beneficiary if he decreased the value of the property, says Nolo.Learn more about Financial Planning