Metro® Boston, Publication Date: January 5, 2011
By Attorney George Warshaw
It’s not unusual for parents to gift their home to their children and expect to live in it afterwards; but we’ve all heard stories – all too real – about how someone’s parents were later forced to move.
How can something so simple go so badly?
Suppose you (the parent) deed your home to your son as a gift. He gets a mortgage but can’t pay it; or, your son’s creditors place a lien against all real estate standing in his name; or, your son gets divorced and now your home is one of his assets before a probate judge.
How can you protect your home? A trust is perhaps the best method, but a life estate may work almost as well.
It works like this: In the deed to your son or daughter you, the parent, simply reserve the right to live in the house the rest of your life (i.e. called a “life estate”). While your son’s creditors may still acquire a lien, the lien is subject to your right to live in the house forever. If your son wants a mortgage, your permission is needed – and, if you take my advice – be smart, don’t give it! If you do give it, you will likely be evicted in the event of a foreclosure. © 2011 George Warshaw.
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Caution. The foregoing is not intended as legal advice. Laws, and court decisions interpreting them, change frequently. This post is not updated. If you have a legal question, only an actual consultation with an attorney who has an opportunity to review all the facts can provide an answer that applies to your situation.
Attorney George Warshaw represents buyers and sellers of homes, condos and investment properties and prepares wills and trusts for inheriting real estate. George welcomes new clients and questions at george.warshaw@warshawlaw.com.
If you missed my column in the Wednesday Boston®Metro newspaper you can read it here! And contact me if you need help in buying or selling your home or in planning your will. - George
George in the Metro 
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