Help with lifetime lease

[loveladyrick]

What is the name of your state? Michigan.

I'm terminally ill with no income. I'd like to leave my home to my niece when I pass, but don't have the funds for an attorney to draw up a lifetime lease. I want to transfer the deed to her, but protect my rights to live here until my death. Are there any forms I can download for free to take care of this myself? Thank you for any help you can offer. My email is: [email protected] for a direct reply as I don't visit this site often.

 

[FlyingRon]

You can find the forms on-line (see the links at the top of the FreeAdvice pages). What you're looking for is called a "Life Estate."

However, I strongly advise that you DO NOT DO THIS. It's bad for you and bad for your daughter. Instead look into a will or possibly a living trust.

The problems are many:

1. Giving away the property may make you ineligible for medicaid benefits.
2. If you need the money and you are a senior now, you can qualify for a reverse mortgage on the property, which is not available if you don't own the property or even give away partial ownership to a younger person.
3. If a turn of events occur and you decide you need to sell the property or otherwise don't wish your daughter to retain it, you're out of luck. You can't undo the gift.
4. Your daughter will receive your basis (what you paid for the property). When she sells it, she may be subject to taxes in excess of whatever personal exemption may be in effect at the time. If she inherits the property the basis steps up to the value at the time of your death.