Can I allow someone to live in my home after my death?

Yes, you can create an occupancy trust where you give a family member or a loved one the right to occupy your home for their life or for a specific period of time after your death. An occupancy trust is different from giving someone a life estate in your property. The beneficiary of a life estate can sell or transfer their interested in your home. With an occupancy trust, legal title to your home is held by the trust, and the occupant only holds the right to live there subject to any conditions or rules as you define them.

 

Occupancy trusts are commonly used by blended families so that a surviving spouse can continue to live in the home while ensuring that it eventually passes to the children from the previous marriage. Occupancy trusts can also benefit adult children with special needs so they are able to remain in the home with continued care and support.   

 

The conditions for the occupant to reside in your home can be customized to your wishes and the needs of the occupant. These conditions may include:

• How long the occupant is required to live at your home to maintain residency there.    Typically, the occupant must reside in the home for at least 183 days of each 360-day period.
• Who is required to pay the utility bills, such as electricity, water, sewage, gas, trash, telephone, internet, etc.
• Who is required to pay the real estate taxes.
• Who is required to pay the mortgage, if any.
• Who is required to pay the insurance coverage protecting the home.
• Who is required to pay for the ordinary repairs and maintenance to the home, such as replacement of the roof, water heater, heating and air conditioning systems, appliances, etc.
• If the occupant is allowed to have a spouse, friend, companion, caregiver, or any other person reside with them in the home.

If it is your wish that the trust pays all or some of the various expenses of maintaining your home during the occupancy, you will need to allocate specific funds to the trust for these expenses. While it can be difficult to estimate how much to allocate to the trust, it may be helpful to consider the life expectancy of the occupant, and the age, condition, and annual upkeep of your home.