Life Estate Deed (Reserved Life Estate) - Minnesota

WHAT THIS DEED IS — AND IS NOT
This is a TRADITIONAL RESERVED LIFE ESTATE DEED. The Grantor conveys the remainder interest to the Remainderman now and RESERVES a life estate for the measuring life. On the death of the life tenant, the remainder becomes possessory; Section 4.2 controls if a named Remainderman has died. This deed is IRREVOCABLE: the life tenant CANNOT sell, mortgage, encumber, or revoke the fee without the Remainderman (and the Remainderman's spouse) joining in the conveyance.

This is NOT an enhanced "Lady Bird" / transfer-on-death deed. Unlike a Lady Bird deed, the Grantor here does not retain the power to sell, gift, or revoke during life without the Remainderman's signature, and the gift of the remainder is a completed present transfer. Minnesota does not recognize the enhanced life estate (Lady Bird) deed; Minnesota's nonprobate alternative is the statutory Transfer on Death Deed (Minn. Stat. §§ 507.071), which is a separate instrument. Use that template if revocability is the goal.

LIFE ESTATE DEED (RESERVED LIFE ESTATE)

State of Minnesota

Drafted By:
_____________________________________________
(Name and Address - Required per Minn. Stat. 507.091)

After Recording Return To:
_____________________________________________
_____________________________________________
_____________________________________________

Tax Statements Should Be Sent To:
_____________________________________________
_____________________________________________

Property Identification Number (PIN):
_____________________________________________

SPACE ABOVE FOR RECORDER'S USE

DOCUMENT INFORMATION

eCRV Number (if required): _____________________________________________

LIFE ESTATE DEED

KNOW ALL PERSONS BY THESE PRESENTS:

This Life Estate Deed is made on _________________, 20_____,

ARTICLE I: PARTIES

Section 1.1 Grantor(s)

_____________________________________________
(Name)

a ☐ single person ☐ married person ☐ _________________ [entity type]

of _____________________________________________
(Address)

Grantor marital status (transaction information):
☐ Single
☐ Married
☐ Unmarried

Section 1.2 Life Tenant(s) / Measuring Life

The Grantor RESERVES a life estate as set forth in Article III. The life estate is measured by the life of:

☐ The Grantor named above (reserved life estate)
☐ The following person(s) (life estate pur autre vie): _____________________________________________

Section 1.3 Remainderman / Remaindermen (Grantee of the Remainder)

_____________________________________________
(Name)

of _____________________________________________
(Address)

Manner of Holding the Remainder Interest:
☐ A single person
☐ As joint tenants with right of survivorship and not as tenants in common
☐ As tenants in common (state shares): _________________________
☐ A _________________ [entity type], a _________________ [state] _________________ [entity form]

ARTICLE II: CONVEYANCE OF REMAINDER

Section 2.1 Consideration Recital

This conveyance is made for and in consideration of:

☐ Love and affection (gift; nominal monetary consideration)
☐ $_____________________ and other good and valuable consideration

Section 2.2 Granting Clause (Conveyance of the Remainder; Reservation of Life Estate)

The Grantor hereby GRANTS, CONVEYS, AND QUITCLAIMS (☐ or CONVEYS AND WARRANTS, per Article VI) to the above-named Remainderman, and to the Remainderman's heirs and assigns forever, the entire remainder interest in fee simple in the real property described below situated in _________________ County, Minnesota, RESERVING UNTO THE GRANTOR (and/or the measuring life named in Section 1.2) A LIFE ESTATE in the said property for the duration of the measuring life, as more fully set forth in Article III.

Upon the natural termination of the reserved life estate, the remainder conveyed by this deed becomes possessory as provided in Article IV (Minn. Stat. § 500.10).

Section 2.3 Legal Description

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

Property Address: _____________________________________________

Property Identification Number (PIN): _____________________________________________

ARTICLE III: RESERVATION OF LIFE ESTATE

Section 3.1 Reserved Estate

The Grantor expressly RESERVES a life estate in the property for the measuring life identified in Section 1.2. An estate for life is a freehold estate recognized under Minn. Stat. § 500.01 and § 500.05.

Section 3.2 Rights of the Life Tenant

During the continuance of the life estate, the life tenant shall have the exclusive right to:

(a) Possess, use, occupy, and enjoy the entire property;

(b) Receive and retain all rents, issues, and profits of the property (Minn. Stat. § 500.17);

(c) Lease the property for a term not extending beyond the life estate; and

(d) Exercise all other rights of a life tenant not inconsistent with this deed or with the rights of the Remainderman.

Section 3.3 Duties of the Life Tenant

During the continuance of the life estate, the life tenant shall, at the life tenant's sole expense:

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

(b) Pay all interest on any mortgage or encumbrance existing on the property (the Remainderman is not obligated to pay mortgage principal unless agreed in writing);

(c) Keep the property insured against loss to the extent of the life tenant's interest;

(d) Maintain the property and keep the buildings, fences, and improvements in good repair; and

(e) COMMIT NO WASTE. The life tenant shall not commit voluntary, permissive, or ameliorative waste, and shall not impair the value of the Remainderman's interest. A life tenant who commits waste is liable to the Remainderman at law and in equity.

ARTICLE IV: REMAINDER AND VESTING

Section 4.1 Remainder Becomes Possessory on Death

Upon the death of the measuring life identified in Section 1.2, the reserved life estate terminates and the remainder becomes possessory without a further conveyance. If a named Remainderman has died, the selected provision in Section 4.2 governs that person's share. Title may be confirmed of record by recording a certified copy of the death certificate of the measuring life with the County Recorder.

Section 4.2 Predeceased Remainderman

If a Remainderman predeceases the measuring life, that Remainderman's share shall pass as follows (select one, consistent with the manner of holding selected above):

☐ To the deceased Remainderman's issue, per stirpes, as substitute takers directly under this deed; this share does not pass through the deceased Remainderman's estate.

☐ The vested remainder remains part of the deceased Remainderman's estate and passes under that person's will or the law of intestacy; no substitute gift is made under this deed.

☐ To the surviving Remaindermen (if held as joint tenants with right of survivorship, or as a class gift to those who survive the measuring life)

☐ As otherwise provided: _____________________________________________

ARTICLE V: LEGAL DESCRIPTION

Section 5.1 Property Conveyed

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

Property Address: _____________________________________________

Property Identification Number (PIN): _____________________________________________

ARTICLE VI: WARRANTY, LIMITATIONS, AND SUBJECT-TO

Section 6.1 Nature of Warranty

The conveyance of the remainder is made with the following covenants (select one):

☐ General Warranty — Grantor warrants and will defend title to the remainder against the lawful claims of all persons.

☐ Limited (Special) Warranty — Grantor warrants only against claims arising by, through, or under the Grantor.

☐ Quitclaim — Grantor conveys only such interest as Grantor may have, without warranty.

Section 6.2 Limitations — Irrevocability (Contrast With Lady Bird Deed)

THIS IS AN IRREVOCABLE TRADITIONAL LIFE ESTATE DEED.

(a) The life tenant CANNOT sell, convey, mortgage, encumber, or otherwise transfer the fee simple estate without the written joinder and signature of every Remainderman (and each Remainderman's spouse).

(b) The Grantor does NOT retain any power to revoke this deed, to defeat the remainder, or to convey the fee away from the Remainderman during the life estate.

(c) This contrasts with an enhanced life estate ("Lady Bird") deed, under which a grantor retains the unilateral power to sell, mortgage, gift, or revoke during life. This deed grants no such power. A present, completed gift of the remainder interest has been made.

Section 6.3 Subject To

This conveyance is made subject to:

(a) Real property taxes payable in 20_____ and subsequent years;

(b) All applicable zoning laws, ordinances, and regulations;

(c) All covenants, conditions, restrictions, declarations, easements, and reservations of record;

(d) All matters which would be disclosed by an accurate survey;

(e) The following specific exceptions:

☐ None

☐ As set forth below:
_____________________________________________
_____________________________________________

ARTICLE VII: TAX AND MEDICAL ASSISTANCE NOTICE

IMPORTANT — REVIEW WITH COUNSEL AND A TAX ADVISOR BEFORE SIGNING.

(a) Gift of the remainder. Creating a reserved life estate makes a completed gift of the remainder interest to the Remainderman. 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. Minnesota does not impose a separate state gift tax, but gifts of Minnesota property made within three years of death may be added back to the Minnesota taxable estate.

(b) Step-up in basis. Because the Grantor retains a life estate (possession and the right to income), the full property is generally included in the Grantor's gross estate under IRC § 2036, and the Remainderman generally receives a stepped-up basis under IRC § 1014 at the life tenant's death.

(c) Medical Assistance (Medicaid) — five-year lookback. The transfer of the remainder is an uncompensated transfer that may trigger a period of ineligibility under the five-year lookback (Minn. Stat. § 256B.0595; 42 U.S.C. § 1396p). The value of the retained life estate is generally an excluded asset, but a later sale or transfer of the life estate can itself be a sanctionable transfer. Consult an elder-law attorney before relying on this deed for Medical Assistance planning.

(d) Deed tax. State deed tax under Minn. Stat. § 287.21 applies to the consideration. For a gift transfer with nominal/no consideration, the minimum deed tax of $1.65 ($1.70 in Hennepin and Ramsey Counties) applies; write on the deed: "Total consideration for this transfer is $3,000 or less." An eCRV is required if consideration exceeds $3,000 (Minn. Stat. § 272.115).

ARTICLE VIII: EXECUTION

Well Disclosure (Minn. Stat. § 103I.235, subd. 1)

Complete the applicable choice before recording. The recording restriction in subdivision 1(h) applies to a deed for which a certificate of value is required under § 272.115, and to the specified governmental conveyances. Check the transaction's requirements even if this conveyance is a gift.

☐ No known wells. The Seller certifies that the Seller does not know of any wells on the described real property.

☐ Known wells. A completed well disclosure certificate describing the status and location of each known well accompanies this deed.

☐ Previously disclosed wells, unchanged. I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. Prior certificate filing information: [________________]. Signature of person making this certification: [________________] Date: [________].

If required, provide the buyer the written well information before signing the transfer agreement under subdivision 1(a).

Section 8.1 Grantor's Signature

IN WITNESS WHEREOF, the Grantor(s) have executed this Life Estate Deed.

GRANTOR(S):

_____________________________________________
Signature

_____________________________________________
Printed Name

Date: _____________________________________________

_____________________________________________
Signature (Spouse, if required for current homestead or otherwise joining)

_____________________________________________
Printed Name

Date: _____________________________________________

ARTICLE IX: ACKNOWLEDGMENT

Section 9.1 Minnesota Acknowledgment (Individual)

STATE OF MINNESOTA
COUNTY OF _________________

This instrument was acknowledged before me on _________________, 20_____, by _____________________________________________

☐ who is personally known to me, OR
☐ who produced _________________________ as identification.

_____________________________________________
Notary Public

_____________________________________________
Printed Name of Notary

My Commission Expires: _____________________________________________

[NOTARIAL SEAL/STAMP]

Section 9.2 Out-of-State Acknowledgment

STATE OF _________________
COUNTY OF _________________

This instrument was acknowledged before me on _________________, 20_____, by _________________________.

_____________________________________________
Notary Public

_____________________________________________
Printed Name of Notary

My Commission Expires: _____________________________________________

[NOTARIAL SEAL/STAMP]

EXHIBITS

EXHIBIT A - LEGAL DESCRIPTION

Legal Description of Property:

Real property situated in _________________ County, Minnesota:

_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________

Property Identification Number (PIN): _____________________________________________

MINNESOTA RECORDING REQUIREMENTS AND INFORMATION

Recording Requirements

Document Standards (Minn. Stat. § 507.093)

Minnesota State Deed Tax (Minn. Stat. § 287.21)

Important Minnesota Notes

1. Irrevocable: This traditional life estate deed cannot be undone or the fee sold/mortgaged without every Remainderman (and spouse) signing.

2. Not a Lady Bird deed: For a revocable nonprobate transfer, use a Minnesota Transfer on Death Deed (Minn. Stat. § 507.071) instead.

3. Homestead/marital interest: If the Property is the Grantor's current homestead and the Grantor is married, both spouses must sign unless a § 507.02 exception applies. A spouse may join a conveyance of other real estate to relinquish that spouse's rights; former homestead status alone does not require a signature under § 507.02.

4. Farm tenancies: On termination of a life estate, the rights of farm tenants are governed by Minn. Stat. § 500.25.

5. Legal Counsel: Consultation with a licensed Minnesota attorney and a tax/elder-law advisor is strongly recommended.

THIS DOCUMENT DRAFTED BY (Minn. Stat. § 507.091):

_____________________________________________
Name

_____________________________________________
Address

_____________________________________________
Phone

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