A conveyance instrument allows an individual to transfer ownership of property to another party while retaining the right to live on and use the property for the remainder of their life. This arrangement effectively divides ownership into two distinct interests: the life estate, held by the original owner (the life tenant), and the remainder interest, held by the recipient (the remainderman). Upon the death of the life tenant, full ownership of the property automatically transfers to the remainderman without the need for probate. For example, a parent might transfer their home to their child but retain the right to live there until their passing.
This type of property transfer can offer several advantages, including simplifying estate planning, potentially avoiding probate costs and delays, and allowing individuals to remain in their homes while ensuring their future disposition. Historically, these arrangements were common in agricultural communities, providing security for aging parents while transferring the farm to the next generation. Understanding the implications for property taxes, potential Medicaid eligibility issues, and the rights and responsibilities of both the life tenant and the remainderman is crucial before establishing such an agreement.
