De Facto Life Estate - 0.2 Nano CPE

A Simple Deed Transfer Can Create Complex Tax Consequences.

Families often transfer real estate to children informally to avoid probate or simplify estate planning. However, when a parent transfers title but continues living in the property, the arrangement may create a de facto life estate with significant tax and legal implications.

Learning Objective

Evaluate how de facto life estate arrangements affect estate inclusion, basis adjustments, and potential liability exposure under federal tax law.

Course Description

This nano-learning course reviews the tax implications, estate planning risks, and legal considerations associated with de facto life estate arrangements and informal real estate transfers.

Who Should Take This Course

Tax and accounting professionals advising aging clients, families transferring real estate, or individuals involved in estate and property transition planning.

Why This Course Is Important

Informal property transfers frequently create unintended tax consequences and liability risks. While retained life interests may preserve a valuable step-up in basis, changes in occupancy, creditor exposure, Medicaid rules, and incomplete documentation can significantly alter the tax outcome. Understanding these risks helps practitioners guide clients toward more effective formal planning strategies.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Understand the Hidden Risks of Informal Property Transfers 

Start De Facto Life Estate and learn how retained interests and informal deed transfers can affect estate taxation and long-term planning.