Life Estate Deed (Reserved Life Estate) - Colorado

IMPORTANT LEGAL NOTICE
This is a TRADITIONAL RESERVED LIFE ESTATE DEED. The Grantor conveys the remainder in the Property to the Remainderman while RESERVING a life estate for the life of the named Life Tenant. The Life Tenant keeps exclusive use and possession for life; at the Life Tenant's death, the already-conveyed remainder becomes possessory, outside the Life Tenant's probate estate. Once delivered and recorded, this deed is IRREVOCABLE and creates a present, vested remainder. Colorado law allows the grant of a life estate; any language showing the grantor's intent to create one is sufficient.

THIS IS NOT A "LADY BIRD" / ENHANCED LIFE ESTATE DEED.
In a traditional reserved life estate (this form), the Life Tenant CANNOT sell, mortgage, gift, or revoke the fee without the Remainderman joining. By contrast, an enhanced life estate ("Lady Bird") deed reserves the grantor's unilateral power to sell or revoke during life. Colorado planners often use a beneficiary deed (C.R.S. § 15-15-401 et seq.) or a revocable trust to retain control. If you want retained control, use one of those — not this deed.

LIFE ESTATE DEED (RESERVED LIFE ESTATE)

State of Colorado

Recording Requested By:
_____________________________________________

When Recorded Return To:
_____________________________________________
_____________________________________________
_____________________________________________

Property Address:
_____________________________________________

SPACE ABOVE THIS LINE FOR RECORDER'S USE (Minimum 1" top margin required per C.R.S. § 30-10-406)

DOCUMENT INFORMATION

LIFE ESTATE DEED

KNOW ALL PERSONS BY THESE PRESENTS:

This Life Estate Deed is made and entered into this _____ day of _________________, 20_____.

ARTICLE I: PARTIES

Section 1.1 Grantor(s) (Current Owner)

Name(s): _____________________________________________

Mailing Address:
_____________________________________________
_____________________________________________

Marital Status:
☐ A single person
☐ A married person dealing with his/her sole and separate property
☐ Husband and wife (spouse joining)

Section 1.2 Remainderman (Grantee of the Remainder)

Name(s): _____________________________________________

Legal Address, Including Road or Street Address if Applicable (C.R.S. § 38-35-109(2)):
_____________________________________________
_____________________________________________

Manner of Holding the Remainder (if more than one):
☐ A single person
☐ As joint tenants with right of survivorship, and not as tenants in common
☐ As tenants in common (____% and ____%)

Section 1.3 Life Tenant (Measuring Life)

Name: _____________________________________________

☐ The Life Tenant is the Grantor (the Grantor reserves the life estate to himself/herself).
☐ The Life Tenant is a person other than the Grantor, named above.

Measuring Life: The life estate shall continue for the life of _________________________.

ARTICLE II: CONVEYANCE

Section 2.1 Granting Clause (Conveyance of Remainder; Reservation of Life Estate)

For and in consideration of love and affection and the sum of $10.00 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby SELLS AND CONVEYS to the Remainderman, and the Remainderman's heirs and assigns forever, the remainder in fee simple in all the real property, together with any improvements thereon, situated in the County of _________________, State of Colorado, described in Section 2.2,

RESERVING, HOWEVER, unto [the Grantor / the Life Tenant named above] ("Life Tenant"), a life estate in the Property for the life of _________________________.

Section 2.2 Legal Description

See Exhibit "A" attached hereto and incorporated herein by reference.

also known by street and number as: _____________________________________________

Schedule or Parcel Number: _____________________________________________

ARTICLE III: RESERVATION OF LIFE ESTATE

Section 3.1 Rights of the Life Tenant

During the measuring life, the Life Tenant shall have the exclusive right to use, occupy, possess, and enjoy the Property and to receive all rents, issues, and profits therefrom.

Section 3.2 Obligations of the Life Tenant

During the life estate, the Life Tenant shall:

(a) Pay all general real property taxes and special assessments as they come due;

(b) Maintain hazard/homeowner's insurance naming the Remainderman as an additional insured to the extent of the Remainderman's interest;

(c) Pay the cost of ordinary maintenance and repairs and keep the Property in good condition;

(d) Pay interest on, and keep current, any mortgage or lien existing on the date of this deed.

Section 3.3 Duty Not to Commit Waste

The Life Tenant shall not commit, suffer, or permit waste (voluntary, permissive, or ameliorative) to the injury of the remainder interest. Under Colorado common law, a life tenant who diminishes the value of the inheritance is liable to the Remainderman, who may seek damages or injunctive relief. The Life Tenant shall use the Property as would an ordinarily prudent owner, doing no act that permanently injures the remainder.

ARTICLE IV: REMAINDER / VESTING

Section 4.1 Automatic Vesting

Upon the death of the measuring life, the reserved life estate shall terminate, and the previously conveyed remainder shall become possessory without a further conveyance by the Life Tenant.

Section 4.2 Predeceasing Remainderman

If a Remainderman predeceases the Life Tenant:
☐ The deceased Remainderman's share shall pass to that Remainderman's issue, per stirpes (vested remainder, descendible).
☐ The deceased Remainderman's share shall pass to the surviving Remainderman(en) (joint tenancy with right of survivorship among the Remaindermen).

ARTICLE V: LIMITATIONS (TRADITIONAL — CONTRAST LADY BIRD)

This is a traditional irrevocable reserved life estate. Accordingly:

(a) The Life Tenant cannot sell, convey, mortgage, encumber, partition, or otherwise transfer the fee in the Property without the Remainderman joining in the instrument;

(b) The Life Tenant may transfer only the Life Tenant's own life-estate interest, which ends at the measuring life's death;

(c) The Remainderman holds a present, vested remainder not defeated by any act of the Life Tenant alone;

(d) The Grantor reserves no power to revoke, cancel, or unilaterally convey the fee. (A reserved power to sell/revoke without remainderman consent would create an enhanced/"Lady Bird" deed — which this instrument is NOT.)

ARTICLE VI: WARRANTY AND EXCEPTIONS

Section 6.1 Warranty (Select One)

☐ General warranty of the remainder (Grantor warrants and will defend the remainder against all persons).
☐ Special warranty of the remainder (against claims by, through, or under Grantor only — C.R.S. § 38-30-113).
☐ Quitclaim of the remainder (no warranty of title).

Section 6.2 Subject To

This conveyance is made subject to:

(a) General taxes and assessments for the year 20_____ and subsequent years, not yet due and payable;

(b) All applicable zoning, building codes, and governmental regulations;

(c) All covenants, conditions, restrictions, reservations, rights-of-way, and easements of record;

(d) Any existing deed of trust of record (confirm any due-on-transfer clause before recording);

(e) The following specific exceptions:

☐ None

☐ As set forth below:
_____________________________________________
_____________________________________________

ARTICLE VII: DOCUMENTARY FEE AND TRANSFER DECLARATION

Section 7.1 Documentary Fee Statement

☐ The consideration for this transfer exceeds $500.00. Documentary fee of $_______ is due (C.R.S. § 39-13-102: $0.01 per $100 of consideration).

☐ This transfer is exempt from the documentary fee. A reserved-life-estate gift deed is exempt under C.R.S. § 39-13-104 as (check one) ☐ a deed conveying title in consequence of a gift (§ 39-13-104(1)(b)) ☐ a document conveying a future interest in real property (§ 39-13-104(1)(k)). Exemption reason: _____________________________________________

Section 7.2 Transfer Declaration

If a documentary fee applies, submit a Transfer Declaration (TD-1000) separately with the deed. The clerk transmits it to the assessor without recording it. (C.R.S. §§ 39-14-101(2), 39-14-102(1)(a), (c).)

ARTICLE VIII: EXECUTION

Section 8.1 Grantor's Signature

IN WITNESS WHEREOF, the Grantor(s) have executed this Life Estate Deed on the date first written above.

GRANTOR(S):

_____________________________________________
Signature

_____________________________________________
Printed Name

Date: _____________________________________________

_____________________________________________
Signature (Spouse, if joining)

_____________________________________________
Printed Name

Date: _____________________________________________

ARTICLE IX: ACKNOWLEDGMENT

Section 9.1 Colorado Acknowledgment (Individual)

STATE OF COLORADO
COUNTY OF _________________

The foregoing instrument was acknowledged before me this _____ day of _________________, 20_____, by:

_____________________________________________

_____________________________________________
Colorado Notary Public signature

[COLORADO NOTARY OFFICIAL STAMP — includes commission expiration date]

Section 9.2 Out-of-State Acknowledgment

STATE OF _________________
COUNTY OF _________________

The foregoing instrument was acknowledged before me this _____ day of _________________, 20_____, by:

_____________________________________________

_____________________________________________
Notarial officer signature

[OFFICIAL STAMP OR SEAL, if required by the state of notarization]
[Commission expiration, if required by the state of notarization: _______________]

EXHIBITS

EXHIBIT A - LEGAL DESCRIPTION

Legal Description of Property:

_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________

County of _________________, State of Colorado

TAX, MEDICAID, AND ESTATE-PLANNING NOTE

Medicaid 5-year lookback. Conveying the remainder while reserving a life estate is a transfer of an asset for Medicaid (Health First Colorado) long-term-care eligibility and may trigger a transfer penalty if made within the 60-month (5-year) lookback period. Only the actuarial value of the remainder (not the retained life estate) is generally treated as transferred.

Estate inclusion and basis (IRC §§ 2036, 1014). If the Grantor is also the Life Tenant and retains possession or enjoyment for life after transferring the remainder, § 2036 may include the affected property interest in the Grantor's gross estate at the Grantor's death, subject to its bona fide sale exception. Section 1014 has separate rules for property acquired from or passing from a decedent. Naming a third party as Life Tenant does not, by itself, establish § 2036 inclusion in that person's estate or a basis adjustment at that person's death; confirm the actual ownership and tax facts with tax counsel.

Gift tax (Form 709). The conveyance of the remainder is a completed gift of a future interest; the annual exclusion does not apply to future interests, so a Form 709 should be filed. The taxable gift equals the actuarial value of the remainder, computed using the IRS § 7520 rate and actuarial tables.

COLORADO RECORDING REQUIREMENTS AND INFORMATION

Recording Requirements

Recording Fees

Documentary Fee (State Transfer Tax)

Important Legal Notes

1. Race-notice state. Recording provides constructive notice (C.R.S. § 38-35-109).
2. Beneficiary deed alternative. Colorado authorizes a revocable beneficiary deed (C.R.S. § 15-15-401 et seq.) that passes title at death while leaving the owner in full control during life — consider it if retained control is desired.
3. Title insurance. Consider obtaining or updating title insurance and adding the Remainderman as an additional insured.
4. Legal counsel. Consultation with a licensed Colorado attorney is recommended.

SOURCES AND REFERENCES

• C.R.S. § 38-30-101 (parties entitled to hold lands may convey)
• C.R.S. § 38-30-113 (statutory deed forms)
• C.R.S. § 38-35-109 (grantee address requirement)
• C.R.S. § 39-13-102 (documentary fee); § 39-13-104(1)(b),(k) (gift and future-interest exemptions)
• C.R.S. § 30-10-406 (recording format)
• 26 U.S.C. § 2036 (retained life estate; estate inclusion); 26 U.S.C. § 1014 (step-up in basis)
• IRS Form 709 and § 7520 actuarial tables (gift of remainder)

This template is provided for informational purposes only and does not constitute legal advice. Consult with a licensed Colorado attorney before using this form.

Last Updated: 2026-06-14