Adding loved ones to your Deed during your lifetime can ensure that your home transfers to them automatically upon your passing, without the need for often complex and expensive probate procedures.  For this reason, this is one of my favorite estate planning tools that I recommend for the overwhelming majority of my clients!

There are many types of Deeds which you can execute which can accomplish this.  The following are examples of some of the more common types of Deeds…

Joint Tenancy or Tenants by the Entirety Deeds

These Deeds simply add another person along with you to your current Deed and the property automatically transfers to the surviving owner listed on the Deed.

Joint Tenant Deeds are used when adding someone other than your spouse. Whereas, the Tenants by the Entirety Deed is utilized to add your Husband or Wife.

Advantage: Since these types of Deeds carry with them a right of survivorship, nothing needs to be done upon your passing – the title to the property is automatically transferred to the survivor. By operation of law, the survivor owns the whole of the property upon your passing and no further action is required by the survivor to gain title to the real property.

Disadvantage: These Deeds give the person you are adding equal ownership and control over the property while you are alive. Hence, if you changed your mind later and decided to sell the property or simply transfer the property back to you, you would need permission and signatures of the person(s) that you added to title.

Life Estate with Powers of Sale Deeds

Life Estate Deeds with Powers of Sale identify those that will receive title to your property upon your passing, WITHOUT granting them rights to the property during your lifetime.

Life Estate Deeds are used when the owner of the property wishes to transfer property upon their death but does not wish to add someone as an actual joint owner of the property during their lifetime.

Advantage: Upon your passing, the person(s) you name in your Life Estate Deed (also known as “remaindermen”) will automatically own the property. No probate is needed to effectuate the title transfer. And unlike the Joint Tenant or Tenants by the Entirety Deed, if you changed your mind at a later date and wished to refinance, sell or simply eliminate the Life Estate Deed, you can do so without the consent of the remaindermen.

Disadvantage: If you ever applied for Medical Assistance, Medicaid, etc., your real estate will likely still be considered an asset and you may not qualify for the same. Or, even if you did qualify, your home may need to be sold or a lien placed against it in order to pay back any public assistance monies owed.

Life Estate without Powers of Sale Deeds

Life Estate Deeds without Powers of Sale also identify those that will receive title to your property automatically upon your passing.

Again, this type of Deed is used when the owner of the property wishes to transfer property upon their death but does not wish to add someone as an actual joint owner of the property during their lifetime.

Advantage over Life Estate with Powers of Sale Deeds: There is normally a five-year look back period when applying and qualifying for medical assistance, i.e. as long as this type of Deed is executed more than five years before you are applying for Medical Assistance, Medicaid, etc., it is likely that the property may not be considered an asset that would be subject to sale or lien. As such, this type of Deed is an excellent tool to utilize, especially if your home is your only valuable asset. Your heirs would still be able to take title to the property after you pass, even if you had received Medical Assistance/Medicaid prior to your death. Many people lose their family home when receiving Medical Assistance, and this is a great way to ensure that your heirs are still provided for even if you pass without any other assets.

Disadvantage: These Deeds CANNOT be undone without the consent of the remaindermen, e.g. if you changed your mind about later selling or refinancing or wanted to undo this type of Deed, all remaindermen would have to consent to the same. Hence, you are no longer in complete control of your real estate

Simple Deed Transfer during your lifetime

If you wished to do an outright gift of your property during your lifetime, a simple Deed transferring title from yourself to another can be executed. Obviously this type of Deed should only be considered when you want to relinquish all title and control over the asset immediately upon execution thereof, as such Deeds cannot be changed by you thereafter.