Legal Question in Real Estate Law in New Jersey

Re: so confused over what a life estate is

A life estate is usually a reserved interest in a house when title is transferred to another (for example between a parent and child). The Deed transferring the ownership spells out that the Grantor (person transferring) is transferring ownership, but reserving the right to continue to live in the house until some specified time (death, incapacity, downsizing, etc.). There are many issues that should have been covered at the time of the transfer, such as who has the responsibility to pay bills (like real estate taxes, homeowners insurance, mortgage, if any, repairs and maintenance, etc.), and what happens if the person retaining the life estate has to move. Also, the transfer is a gift and should have been reported as such, even if no gift tax was incurred or had to be paid. I suggest you contact a lawyer, like me, familiar with all facets of these types of transactions (I have done many of these over the years) familiar not only with real estate, but tax matters, estate planning, etc. Contact me directly and I am sure I can help you.