Helen wants to leave her Bethesda home to her daughter upon her death while retaining the right to live in and use the property for the rest of her life. Which type of property ownership arrangement best accomplishes Helen's goal under Maryland law?
Correct Answer
B) Helen conveys a remainder interest to her daughter while retaining a life estate
A life estate is the appropriate ownership arrangement for Helen's goal. Helen retains a life estate, giving her the right to use and occupy the property for the duration of her life. Upon her death, ownership automatically passes to her daughter, who holds the remainder interest. This arrangement avoids probate and accomplishes the transfer of the property at death without a will. Life estates are recognized under Maryland property law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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