Legal Question in Wills and Trusts in New York

Re: Life Tenancy

As long as you pay Fair Market Value for the home, which can be discounted because of the "life estate" you are granting, you should be OK. Best is that your relative use her own attorney (not one you use or recommend) to assist her in this, to assure neutrality. When I represent people in these situations, I strongly recommend that the relative's regular treating doctor examine her just prior to her signing any documents and become a witness to the documents used. This goes to the question of competency to transact the sale and can avoid future litigation.

Re: Life Tenancy

There is another alternative. Your relative should look into a Reverse Mortgage. There are pros and cons, but here are some of the good points about reverse mortgages: allows your relative to stay in her home; pays off existing mortgages on the home; simple to qualify because credit score and income may not be considered; no monthly payments are due for as long as she lives in the home; receives monthly income; heirs inherit the home and keep all equity after the reverse mortgage is paid off; proceeds are not taxable; the interest rate is lower than traditional mortgages and home equity loans.