Life Estate Deed (Reserved Life Estate) - District of Columbia

IMPORTANT LEGAL NOTICE
This is a TRADITIONAL RESERVED LIFE ESTATE DEED. The Grantor conveys the remainder interest to the Remainderman now while RESERVING a life estate for the life of the measuring person. Upon the death of the life tenant, the previously conveyed remainder becomes possessory without a transfer through the Life Tenant's probate estate. This deed is IRREVOCABLE: once delivered, the life tenant cannot sell, mortgage, or revoke the conveyance without the Remainderman joining in a new deed. Consult a qualified D.C. attorney and a tax advisor before signing.

THIS IS NOT A "LADY BIRD" / ENHANCED LIFE ESTATE DEED.
A reserved life estate deed differs fundamentally from an enhanced life estate ("Lady Bird") deed. With a Lady Bird deed, the life tenant retains the power to sell, mortgage, gift, or revoke during life without the remainderman's consent, and the remainder is a mere expectancy until death. With this deed, the remainder vests now as a present future interest; the life tenant has surrendered the power to defeat it. If you intend to keep the unilateral power to sell or revoke, use a Lady Bird deed instead — see the separate lady_bird_deed template.

LIFE ESTATE DEED (RESERVED LIFE ESTATE)

District of Columbia

1. DOCUMENT HEADER & RECORDING INFORMATION

Prepared By:
_______________________________________________

Return Recorded Document To:
_______________________________________________
_______________________________________________
_______________________________________________

Mail Tax Statements To (Life Tenant):
_______________________________________________
_______________________________________________

RECORDER OF DEEDS INFORMATION

RECORDATION & TRANSFER TAX (Form FP-7/C)

Classify the interests conveyed and verify recordation- and transfer-tax exemptions separately before calculating tax. If no exemption applies, no or nominal consideration ordinarily makes fair market value the tax base under D.C. Code §§ 42-1103 and 47-903; the ordinary 1.1% base and additional 0.35% rules then apply according to the statutory transaction classification, not simply the property's value. A transfer between spouses, parent and child, grandparent and grandchild, or domestic partners, without actual consideration, may qualify for both the recordation-tax exemption in D.C. Code § 42-1102(7) and the transfer-tax exemption in D.C. Code § 47-902(5). Use the current Office of Tax and Revenue return and instructions to classify the interests conveyed and document any exemption.

2. PARTIES

GRANTOR (Conveying the remainder; reserving a life estate):

Name: [GRANTOR FULL LEGAL NAME]

Mailing Address: [FULL ADDRESS]

Type:
☐ An individual
☐ A married individual (spouse joining)
☐ A domestic partner (D.C. Code § 32-701)
☐ Trustee of [Trust Name] dated [DATE]

LIFE TENANT (Measuring Life):

☐ Same as Grantor (the Grantor reserves the life estate for the Grantor's own life)
☐ Other measuring life: [LIFE TENANT FULL LEGAL NAME], whose address is [ADDRESS]

The "measuring life" is the person whose lifetime fixes the duration of the life estate. Most commonly the Grantor reserves the life estate for the Grantor's own life.

REMAINDERMAN (Receiving the remainder; takes fee at the life tenant's death):

Name(s): [REMAINDERMAN FULL LEGAL NAME(S)]

Mailing Address: [FULL ADDRESS]

If more than one Remainderman, they take title as:
☐ Tenants in common
☐ Joint tenants with right of survivorship (must be expressly stated)
☐ Tenants by the entirety (married couple)

3. CONSIDERATION

For and in consideration of the love and affection the Grantor bears for the Remainderman, and the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged:

☐ No monetary consideration — this is a gift of the remainder interest
☐ Nominal consideration of $[AMOUNT]

4. GRANTING CLAUSE (Conveyance of Remainder; Reservation of Life Estate)

This deed, made this _____ day of _________________, 20_____, by [GRANTOR NAME], of the District of Columbia, witnesseth, that in consideration of the foregoing, the Grantor does hereby GRANT unto [REMAINDERMAN NAME] ("Remainderman"), and the Remainderman's heirs, successors, and assigns forever, the REMAINDER interest in fee simple in and to the real property described in Exhibit A (the "Property"),

RESERVING UNTO THE GRANTOR [☐ and unto [LIFE TENANT NAME]] a LIFE ESTATE in the Property for and during the natural life of [MEASURING LIFE], with full use, possession, and enjoyment of the Property during the term of the life estate.

TO HAVE AND TO HOLD the remainder interest unto the Remainderman, the Remainderman's heirs and assigns, forever, subject to the life estate reserved above.

5. RESERVATION OF LIFE ESTATE — RIGHTS AND DUTIES OF LIFE TENANT

During the term of the reserved life estate, the Life Tenant shall have and shall be subject to the following, consistent with the District of Columbia common law of life estates:

5.1 Rights of the Life Tenant

• Exclusive right to use, possess, and occupy the Property during the life estate;
• Right to all rents, issues, and profits of the Property during the life estate;
• Right to retain any homestead, senior, or owner-occupant real property tax benefits for which the Life Tenant qualifies as the occupant.

5.2 Duties of the Life Tenant

The Life Tenant shall, at the Life Tenant's own expense:

• Pay all real property taxes and assessments as they come due;
• Maintain casualty insurance on the improvements in an amount not less than full replacement value, naming the Remainderman as an additional insured/loss payee as the Remainderman's interest may appear;
• Pay interest (but not principal) on any existing encumbrance and keep current any obligation that is a lien on the Property;
• Keep the Property in good repair and commit no waste.

5.3 Prohibition Against Waste

The Life Tenant shall not commit voluntary, permissive, or ameliorating waste, nor do or suffer any act that permanently impairs the value of the Remainderman's interest. The Remainderman, as holder of a vested future interest, has standing to enforce these duties and to seek injunctive relief or damages for waste.

6. REMAINDER AND VESTING

Upon the death of the Life Tenant (the measuring life), the life estate terminates, and the previously conveyed remainder becomes possessory without a further conveyance by the Life Tenant. A certified death certificate may help document the death of the measuring life in the land records; confirm with the Recorder of Deeds and a title professional what evidence should be recorded for this property.

If a Remainderman predeceases the Life Tenant, that Remainderman's share shall pass:
☐ To that Remainderman's then-living issue (descendants), per stirpes
☐ To the surviving Remainderman(s) (right of survivorship)
☐ As otherwise provided here: _______________________________________________

If no alternate is selected and a sole Remainderman predeceases the Life Tenant, the remainder may pass through the Remainderman's estate. Specify a contingent remainder to avoid uncertainty.

7. LEGAL DESCRIPTION

The Property is described in Exhibit A attached hereto and incorporated by reference.

8. LIMITATIONS ON THE LIFE TENANT (Irrevocability)

THIS DEED IS IRREVOCABLE. Unlike a Lady Bird (enhanced life estate) deed:

• The Life Tenant CANNOT sell, convey, mortgage, encumber, or otherwise transfer the fee simple estate during the life estate without the Remainderman joining in the instrument;
• The Life Tenant CANNOT unilaterally revoke or amend this deed or defeat the Remainderman's vested interest;
• Acting alone, the Life Tenant can convey or encumber only the life estate — i.e., an interest that ends at the Life Tenant's death;
• Any deed of trust, lease, or lien created by the Life Tenant alone is limited to the duration of the life estate and does not bind the remainder.

9. WARRANTY OF TITLE

The Grantor covenants and conveys the remainder interest with the following warranty (select one):

☐ General Warranty — Grantor warrants generally and will defend the title against the lawful claims of all persons (D.C. Code § 42-601, "with general warranty")
☐ Special (Limited) Warranty — Grantor warrants only against claims arising by, through, or under Grantor ("with special warranty")
☐ Quitclaim — Grantor conveys without warranty of title

10. SUBJECT TO

This conveyance of the remainder, and the reserved life estate, are made SUBJECT TO:

☐ Real property taxes and assessments not yet due and payable
☐ Easements, covenants, conditions, and restrictions of record
☐ Zoning, building, and land-use regulations
☐ The following specific encumbrances: ___________________________________

11. TAX, MEDICAID, AND ESTATE-PLANNING NOTE

CONSULT COUNSEL AND A TAX ADVISOR BEFORE SIGNING. This is general information, not advice.

• Gift of the remainder. Conveying the remainder is a completed gift of the actuarial value of the remainder interest. A completed gift of the future remainder generally requires IRS Form 709 regardless of value because the annual exclusion does not apply to future interests. The remainder value is computed using IRS actuarial tables (§ 7520 rate and the life tenant's age).
• Medicaid 5-year lookback. The gift of the remainder is generally a transfer of assets that can trigger a penalty period under the Medicaid 5-year lookback rules. Because the deed is irrevocable, the Grantor cannot undo it to qualify for Medicaid. Obtain elder-law advice before signing.
• Step-up in basis. Because the Grantor retains a life estate, the full value of the Property is generally included in the Grantor's gross estate under 26 U.S.C. § 2036, and the Remainderman generally receives a stepped-up basis to date-of-death fair market value under 26 U.S.C. § 1014 — often a significant income-tax advantage over an outright lifetime gift.
• Loss of control. Because the deed is irrevocable, the Grantor cannot later sell or refinance the fee without the Remainderman's cooperation.

12. EXECUTION

IN WITNESS WHEREOF, the Grantor has executed this Life Estate Deed as of the date first written above.

GRANTOR SIGNATURE

________________________________________ [Seal]
[GRANTOR NAME]
Date: _______________________

Spouse (if joining to release marital/homestead rights):

________________________________________ [Seal]
[SPOUSE NAME]
Date: _______________________

REMAINDERMAN ACCEPTANCE (Recommended)

The Remainderman accepts the remainder interest conveyed by this deed.

________________________________________
[REMAINDERMAN NAME]
Date: _______________________

13. ACKNOWLEDGMENT

Individual Acknowledgment:

DISTRICT OF COLUMBIA, ss.:

On this _____ day of _________________, 20_____, before me, the undersigned
Notary Public, personally appeared ________________________________________,
known to me (or proved to me on the basis of satisfactory evidence) to be the
person whose name is subscribed to the within instrument, and acknowledged
that he/she executed the same for the purposes therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

________________________________________
Notary Public
My Commission Expires: _________________

[NOTARY SEAL]

EXHIBIT A — LEGAL DESCRIPTION

Property Address: [STREET ADDRESS, WASHINGTON, DC ZIP]

Legal Description:

[INSERT COMPLETE LEGAL DESCRIPTION FROM TITLE COMMITMENT OR PRIOR DEED]

Parcel Identification:

• Square: [NUMBER]
• Suffix: [SUFFIX]
• Lot: [NUMBER]
• A&T Number: [NUMBER]

RECORDING & DRAFTING NOTES

• Statutory deed form: D.C. Code § 42-601 includes a short form that grants a life estate to the grantee. This deed instead reserves a life estate and conveys the remainder; its operative language must express both interests.
• Execution & acknowledgment: Sign and seal the deed under D.C. Code § 42-306(b), and acknowledge it under § 42-401 and Title 1, Chapter 12A. The deed takes effect against third parties upon recording under § 42-401.
• Recording: Record with the DC Office of the Recorder of Deeds with a completed Form FP-7/C (Real Property Recordation and Transfer Tax Form). For a life estate, complete Part H of the FP-7/C.
• Tax exemption: To claim the intra-family exemption, cite D.C. Code § 42-1102(7) on the FP-7/C and attach supporting documentation (ROD-4).
• Recording fee: $30.00 for deeds (verify current fee with the Recorder of Deeds).

END OF LIFE ESTATE DEED

D.C. Code § 42-601 et seq.; § 42-1102; § 47-903