Is it possible to convey an interest in real estate and reserve to the
grantor a life estate and the unrestricted power to convey the real estate
during the grantor's lifetime? (ref. section 6101) 0459
Question
I read the Q&A, on the EPIC Questions and Answers section of your web
site: "Does the provision providing for non probate
transfers on death cover a deed transferring real estate? (ref. sections
6101 and 1106(q)) 0220)," and have a follow-up question. In the
answer to this question, it was stated that a deed conveying upon death
pursuant to MCL 700.6101 is not revocable. Doesn't the following
language in a "Lady Bird" Deed (following Land Title Standard 9.3)
effectively convey real property upon death and yet make this a revocable
conveyance? "The Grantor reserves during the grantor's lifetime a
life estate coupled with an unrestricted power to convey the premises during
the Grantor's lifetime, pursuant to Land Title Standard 9.3."
Answer
Under MCL 700.6101, it is possible to convey an interest in real estate
and reserve to the grantor a life estate and the unrestricted power to
convey the
real estate during the Grantor's lifetime. See Title Standard
9.3. Upon the death of the grantor, the grantee succeeds to the real
estate assuming the grantor has not exercised the power to convey.
This results in avoiding probate on the death of the grantor and the grantor
retains control over transfer of the property during his or her lifetime.
The grantor may want to make it clear that the power to convey includes
the power to sell, gift, mortgage, lease and otherwise dispose of the property.
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Last Updated: 10-11-03
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