Photo by ubeyonroad on Unsplash

Question:

Can you add an addendum to a life estate. My parents created a life estate and the attorney told them they had to put their three children on the deed even though they only wanted to include two. Can the life estate be amended?

Response:

It depends if the third child agrees to give up his interest in the property. All three children are owners of the remainder interest. They can sign a new deed transferring ownership from the three of them to the two who were intended.

However, if the third child is not cooperative, it’s unlikely that a change can be made. In some life estate deeds, the grantors — your parents — retain a power of appointment allowing them to alter the ultimate distribution of the property. If so, they usually must do this through their wills, exercising the “testamentary” power of appointment.

We provide for this in the life estate deeds we prepare in our office because it’s always possible that circumstances may change. While your parents’ deed may have been contrary to their wishes, it could be that due to subsequent events parents may want to change the ultimate distribution of their property.

Related Articles

Will Trust Affect Eligibility for Subsidized Housing? How Long Do Borrowers Have to Pay Estate What They Owe? Have You Considered Selling Your Life Insurance Policy?