Life Estate Deed (Reserved Life Estate) - Delaware

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. In Delaware the words "grant and convey" operate as a special warranty against the Grantor (25 Del. C. § 121); a deed lacking those words may not be insurable.

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. Delaware does not recognize the Lady Bird deed but does authorize a transfer-on-death deed (25 Del. C. ch. 2) that passes title at death while leaving the owner in control during life. If you want retained control, use a TOD deed or a revocable trust — not this deed.

LIFE ESTATE DEED (RESERVED LIFE ESTATE)

State of Delaware

RECORDING INFORMATION

Prepared By and Return To:

Name: ________________________________________
Address: _____________________________________
         _____________________________________
Delaware Bar No. (if attorney): ______________

PROPERTY INFORMATION

DELAWARE REALTY TRANSFER TAX

Exemption (30 Del. C. § 5401)

☐ This conveyance is exempt as a conveyance between parent and child (or the spouse of such a child) (30 Del. C. § 5401(1)(i)) — a common basis for a parent-to-child reserved-life-estate deed.
☐ This conveyance is exempt as a conveyance between husband and wife (30 Del. C. § 5401(1)(g)).
☐ Other exemption (state subsection): ________________________________

Required Tax Forms

☐ Form RTT-TAX — Realty Transfer Tax Return and Affidavit of Gain and Value (required even when exempt; state the exemption)
☐ County-specific affidavits / information sheets (Kent / New Castle / Sussex)

PARTIES

GRANTOR (Current Owner):

Name: [GRANTOR FULL LEGAL NAME]

Mailing Address: [FULL ADDRESS]

Marital Status:
☐ Single
☐ Married, spouse joining
☐ Married, separate property

REMAINDERMAN (Grantee of the Remainder):

Name: [REMAINDERMAN FULL LEGAL NAME]

Mailing Address: [FULL ADDRESS]

Manner of Holding the Remainder (if more than one):
☐ Individually
☐ As tenants by the entirety (married couples)
☐ As joint tenants with right of survivorship
☐ As tenants in common (____% and ____%)

LIFE TENANT (Measuring Life):

Name: [LIFE TENANT FULL LEGAL 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 [NAME OF MEASURING LIFE].

CONVEYANCE

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

THIS DEED, made this _____ day of _________________, 20_____, by and between [GRANTOR NAME], of [CITY], [COUNTY] County, Delaware ("Grantor"), party of the first part, and [REMAINDERMAN NAME], of [CITY], [STATE] ("Remainderman"), party of the second part.

WITNESSETH, that the said Grantor, for and in consideration of love and affection and the sum of ONE DOLLAR ($1.00), lawful money of the United States of America, and other good and valuable consideration, the receipt whereof is hereby acknowledged, does GRANT AND CONVEY unto the said Remainderman, the Remainderman's heirs and assigns, the remainder in fee simple in all that certain lot, piece, or parcel of land situated in [HUNDRED], [COUNTY] County, State of Delaware, and more particularly described in Exhibit A attached hereto (the "Property"),

RESERVING, HOWEVER, unto [the Grantor / [LIFE TENANT NAME]] ("Life Tenant"), a life estate in the Property for the life of [NAME OF MEASURING LIFE].

Statutory Effect of "Grant and Convey" (25 Del. C. § 121)

Pursuant to 25 Del. C. § 121, the words "grant and convey" in this deed, unless specifically restricted or limited, operate as a SPECIAL WARRANTY against the Grantor and the Grantor's heirs and all persons claiming under the Grantor or them, and convey the whole estate (here, the remainder) that the Grantor may lawfully convey, together with the reversions and remainders, rents, issues, and profits thereof, subject to the reserved life estate.

Habendum Clause

TO HAVE AND TO HOLD the remainder in the said lot or piece of ground above described, with the buildings, improvements, hereditaments, and appurtenances, unto the said Remainderman, the Remainderman's heirs and assigns, to and for the only proper use and behoof of the said Remainderman, the Remainderman's heirs and assigns forever, subject only to the reserved life estate described herein.

RESERVATION OF LIFE ESTATE

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.

Obligations of the Life Tenant. During the life estate, the Life Tenant shall:

☐ Pay all taxes and assessments, general and special, as they come due;
☐ Maintain hazard/homeowner's insurance naming the Remainderman as an additional insured to the extent of the Remainderman's interest;
☐ Pay the cost of ordinary maintenance and repairs and keep the Property in good condition;
☐ Pay interest on, and keep current, any mortgage or lien existing on the date of this deed.

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 Delaware 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.

REMAINDER / VESTING

Upon the death of [NAME OF MEASURING LIFE], the reserved life estate shall terminate, and the previously conveyed remainder shall become possessory without a further conveyance by the Life Tenant.

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).

LIMITATIONS (TRADITIONAL — CONTRAST LADY BIRD)

This is a traditional irrevocable reserved life estate. Accordingly:

• The Life Tenant cannot sell, convey, mortgage, encumber, partition, or otherwise transfer the fee without the Remainderman joining in the instrument;
• The Life Tenant may transfer only the Life Tenant's own life-estate interest, which ends at the measuring life's death;
• The Remainderman holds a present, vested remainder not defeated by any act of the Life Tenant alone;
• The Grantor reserves no power to revoke, cancel, or unilaterally convey the fee. (Such a retained power would create an enhanced/"Lady Bird" deed — which Delaware does not recognize and which this instrument is NOT.)

WARRANTY

The remainder is conveyed with the following covenant (select one):

☐ Special warranty — by operation of "grant and convey" (25 Del. C. § 121), against claims by, through, or under Grantor only (default).
☐ General warranty — Grantor expressly warrants and will defend the remainder against the lawful claims of all persons.
☐ Quitclaim — Grantor conveys the remainder without warranty of title (specifically restricting the § 121 covenant).

EXCEPTIONS / SUBJECT TO

This conveyance is made and accepted SUBJECT TO:

☐ All taxes and assessments, general and special, not yet due and payable
☐ Building and zoning laws, ordinances, and regulations
☐ Restrictions, conditions, and easements of record
☐ Facts an accurate survey would disclose
☐ Any existing mortgage of record (confirm any due-on-transfer clause before recording)
☐ Other: [SPECIFIC EXCEPTION], recorded in Deed Book _____, Page _____, [COUNTY] County Records

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 Delaware Medicaid 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 and 1014). If the Grantor retains possession or enjoyment of the transferred property for life, IRC § 2036 generally includes the affected interest in the Grantor's gross estate at the Grantor's death, except for a qualifying bona fide sale for adequate and full consideration. A life estate granted to someone other than the Grantor does not by itself establish that the Grantor retained an interest under § 2036. IRC § 1014 separately governs whether the Remainderman receives a basis adjustment when the property passes from a decedent; have tax counsel assess the deed and the parties' actual interests.

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. (Delaware imposes no state gift or estate tax.)

EXECUTION

IN WITNESS WHEREOF, the said Grantor has hereunto set Grantor's hand and seal the day and year first above written.

GRANTOR SIGNATURE(S)

SIGNED, SEALED, AND DELIVERED
in the presence of:

Individual Grantor:

________________________________________  (SEAL)
[GRANTOR NAME]

Spouse of Grantor (if joining):

________________________________________  (SEAL)
[SPOUSE NAME]

ACKNOWLEDGMENT

Acknowledgment Within Delaware (25 Del. C. § 122)

STATE OF DELAWARE    )
                     ) ss.
[COUNTY] COUNTY      )

BE IT REMEMBERED, that on this _____ day of _________________, 20_____,
personally came before me, the subscriber, a Notary Public for the State
of Delaware, ____________________________________________, party to this
Deed, known to me personally to be such, and acknowledged this Deed to
be his/her/their act and deed.

GIVEN under my hand and seal of office, the day and year aforesaid.

________________________________________
Notary Public
My Commission Expires: _________________

[NOTARY SEAL]

Acknowledgment Outside Delaware (25 Del. C. § 129)

STATE OF _____________ )
                       ) ss.
COUNTY OF ____________ )

On this _____ day of _________________, 20_____, before me, a Notary
Public, personally appeared ____________________________________________,
known to me (or proved to me on the basis of satisfactory evidence) to
be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies).

WITNESS my hand and official seal.

________________________________________
Notary Public
My Commission Expires: _________________

[NOTARY SEAL]

EXHIBIT A — LEGAL DESCRIPTION

Property Address:
[STREET ADDRESS]
[CITY], Delaware [ZIP]

County: [COUNTY]
Hundred: [HUNDRED NAME]
Tax Parcel ID: [NUMBER]

Legal Description:

[INSERT COMPLETE LEGAL DESCRIPTION]

Example:
ALL that certain lot, piece, or parcel of land and premises situated in [HUNDRED], [COUNTY] County, State of Delaware, bounded and described as follows:

[METES AND BOUNDS DESCRIPTION]

BEING the same lands and premises conveyed to Grantor by deed of [PRIOR GRANTOR] dated [DATE] and recorded in the Office of the Recorder of Deeds in and for [COUNTY] County, Delaware, in Deed Book _____, Page _____.

DELAWARE RECORDING REQUIREMENTS

Recording Offices

Record at the Recorder of Deeds for the county where the Property is located:

• Kent County — Recorder of Deeds, Dover
• New Castle County — Recorder of Deeds, Wilmington
• Sussex County — Recorder of Deeds, Georgetown

Realty Transfer Tax (30 Del. C. §§ 5401, 5402)

• State Rate: 3% of consideration/fair market value, reduced to 2.5% where the county or municipality has enacted its full 1.5% local realty transfer tax
• County/Municipal Rate: Up to 1.5%, where enacted (most Delaware counties and municipalities have enacted the full 1.5% rate)
• Parent-child and spousal conveyances are exempt (§ 5401(1)(i), (g)) — file RTT-TAX claiming the exemption.

Document Requirements

☐ Words "grant and convey" used (25 Del. C. § 121) for insurability/special warranty
☐ Proper acknowledgment (25 Del. C. §§ 122, 129)
☐ Form RTT-TAX — Realty Transfer Tax Return and Affidavit (with exemption claimed, if applicable)
☐ County-specific affidavits and information sheets
☐ Recording fee
☐ Legible document meeting county formatting standards

SOURCES AND REFERENCES

• 25 Del. C. § 101 (transfer of title by deed)
• 25 Del. C. § 121 (form of deed; "grant and convey" as special warranty; passes remainders)
• 25 Del. C. §§ 122, 129 (acknowledgment within / outside Delaware)
• 30 Del. C. § 5401 (realty transfer tax; parent-child and spousal exemptions); § 5402 (rate)
• 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)

END OF LIFE ESTATE DEED (RESERVED LIFE ESTATE)

Delaware Code Title 25, Chapter 1

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

Last Updated: 2026-06-14