Using a life estate deed to avoid probate on your home
David: Hey, good morning. I'd like to thank you for this. It's a great show.
Attorney Tom Olsen: Thank you.
David: I had a question. My mother and father-in-law did a quitclaim deed to my wife and her two sisters about five years ago. It also includes, I think, I don't know what the exact term is, a living-- Basically, her parents reside in the home and have all the benefits, but when they pass away-
Tom: Oh, so the parents reserved a life estate for themselves?
David: Yes, exactly.
Tom: Okay, David, go ahead.
David: My question was, should they have to go into a nursing home? Is that asset theirs or is it my wife's right now and her two sisters? Secondly, are there any tax ramifications? Because we just became aware of it, but they executed the actual quitclaim deed about five years ago now.
Tom: Okay. David, I want to look at the deed to confirm it is what you and I are talking about what it is. David, the good news is it sounds like they have taken the proper steps to avoid probate so that when they pass away, this property will automatically pass to their children. No headaches, no hassles, no probate. That's the good news. Again, it sounds like that's what they've done, but I want to see the deed itself to confirm that that's what they've done. David, if you want to call our office, we can look it up online for you and just confirm that that's what it says.
David, here in the state of Florida, your home, the home you live in, and this includes your in-laws, is always protected from the cost of a nursing home. As long as it's your homestead, it's automatically protected. That's your homestead only. It does not include your rental property, investment property, your beach condo. It's a home only. From that perspective, David, they were already protected, they continue to be protected, with this deed that they've done. Does that answer your question for you?
David: Yes, it does. It sounds like they're ahead of the game. They're very good about these things.
Tom: Yes.
David: They're fantastic mother and father-in-law too.
Tom: Aww, very sweet of you to say so. Now, David, we talked about their home being protected from the cost of a nursing home. We didn't talk about their savings, checking, savings, CDs, IRAs, retirement accounts, life insurance. Those things do need protection. We'll let know here at the Olsen Law Group, we have all the tools we need to protect your life savings from the cost of a nursing home. They might still want to meet with us and discuss this issue about their other assets. David, we also have a booklet called How to Protect Your Life Savings from the Cost of a Nursing Home. Maybe you want to call the Olsen Law Group sometime and ask for that booklet, and we'll mail it out to you. That would be a great starting point for you to understand what we need to do to protect our other assets from the cost of a nursing home.
David: Okay. Well, that sounds fantastic. I definitely appreciate it. I'll follow up with the office for the pamphlet.
Tom: Very good. David, we appreciate that. You want to reach the Olsen Law Group and get your booklet, How to Protect Your Life Savings from the Cost of a Nursing Home, or that booklet, Easy Ways to Avoid Probate, call the Olsen Law Group anytime, 407-423-5561.
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