OLR Report 2013-R-0312 explains if there is a mechanism under Connecticut law that allows a person to sell his or her home to a relative but retain the right to live in it until death. The Office of Legislative Research is not authorized to issue legal opinions and this report should not be considered as one.
Under Connecticut law, a person can sell or otherwise transfer ownership of his or her home to a relative but retain a life estate, thus allowing the person to remain living in the property until death. A person can also create a living trust, transfer the home's ownership to the trust, but remain living in the home, and designate a relative as the beneficiary to take ownership upon the person's death. Both options avoid the probate process.
The report briefly summarizes the basic features of life estates and living trusts in the context of allowing a person to remain in their home after selling it to a relative. The report does not address related tax issues, which can be complex (especially regarding trusts).
For more information, read the full report.
