In estate planning, utilizing the life estate agreement is rare, but can be effective in transferring property. Accordingly, the key reasons why people implement the life estate in their estate plans are as follows:   

• Avoid putting the property through probate.
• Impose controls such as passing property to your children.

In reality, the motivation to use the life estate is to impose controls on the property. As mentioned in the article The Life Estate and Personal Possessions, my Uncle lived in the home of his deceased spouse under a life estate agreement. In simple terms, the agreement allowed my Uncle to remain in the home until death. After the death of my Uncle, home ownership transferred to the children of his deceased spouse. Although the life estate worked well in my Uncle’s estate, this is not always the case. There are also disadvantages to the life estate agreement that could make using the agreement in any estate plan questionable.

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