Finance
A Texas property owner transfers their home to their adult child using a deed while still retaining a life estate. The parent's estate plan benefit is that:
AThe property avoids estate taxes entirely
BThe property passes outside probate to the child at the parent's death while the parent retains the right to live there✓ Correct
CThe parent can sell the property without the child's consent
DThe child cannot mortgage the property until the parent dies
Explanation
A life estate deed allows a parent to convey the remainder interest to a child while retaining the right to occupy the property for life. At the parent's death, the property transfers to the remainderman (child) without probate.
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