Can My Father Avoid Probate on His House with a Life Estate Deed?
June 29, 2007

Q: My father wants to avoid probate for his house with a life estate deed, under which my siblings and I would get the property after his death. Is this a good idea?


A: Probably not. If your father has owned the property for a long time, the property has probably appreciated significantly in value. A life estate deed would result in a very low carry-over basis in the property for you and your siblings. When you sell the property, your capital gains tax would be based on your father's very low basis. Instead, if you acquire the property upon your father's death, you will have a stepped-up basis equal to the date-of-death value of the property.

If you have questions, please contact:
John R. Wise, Esquire

(410) 752-2468