Pennsylvania Life-Estate Deeds
By Sean Quinlan, Esq. · Updated January 15, 2025
A life-estate deed transfers Pennsylvania real estate to remainder beneficiaries while reserving a life interest for the grantor. It avoids probate but creates several tradeoffs.
Pros
Probate avoided. Step-up in basis preserved (because the life estate triggers § 2036 inclusion). Lower cost than a trust.
Cons
Grantor cannot sell or refinance without remaindermen's consent. Property is exposed to remaindermen's creditors. PA inheritance tax still applies.
Better alternative
A revocable living trust avoids probate without locking in remaindermen. Life estate is a niche tool, not a default.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
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