So as noted in some other threads, we just purchased a condo in Florida, for the in-laws to live in.
For a number of long boring reasons, we’re not putting the place in their name (or even listing them as partial owners).
But should we shuffle off this mortal coil before they do, right now the place would be treated along with the rest of our assets, and presumably an executor would attempt to liquidate it.
We certainly don’t want them to be homeless should this occur, but we also have reasons we need to preserve our assets for the kids’ trusts (special needs kid), so I was wondering about setting up a life estate instead.
Anyone have experience with such a thing (either as grantor or beneficiary)? Is it as much of a nightmare as it seems like it might be?
Also: Could something like this be set up by doing a codicil to our wills or should we do whole new wills? We last updated them when the kids (now 19 and 17) were quite young, and the basics aren’t changing.
First thing - see a lawyer who practices in estate planning in your jurisdiction.
Speaking generally, life interest (or rights to reside etc) can be useful, provided that they are drafted properly having regard to the potential issues that arise. The most obvious ones being:
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Who pays the holding costs, maintenance, statutory charges etc.
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If the property is not suitable, can it be sold and a replacement purchased? What happens to any balance?
In relation to the will/codicil, I generally think a new will is the way to go, unless there is so e pressing urgency necessitating a codicil.
Thanks! Yes, we’ll definitely consult a lawyer - probably the same guy who did our original wills. Hopefully things aren’t especially urgent right now 
Holding costs etc. are a good question - to my understanding, the beneficiary (if that’s the right term) is supposed to do all upkeep, taxes etc. and if they fail to do so, the trust / estate can be terminated. The parents have no assets to support the place, though, and their income is not sufficient to cover the costs. Nor could the other adult children support the place - so that’s a pickle regardless.
Good question on the suitability. If it no longer sufficed, it would most likely be because one or both parents failed to the point if needing a nursing home (this place is all one level, has grab bars in the bathrooms, and other accommodations). No money for THAT, either, so it would be a Medicaid-type hellhole :(.
That, by the way, is one of numerous reasons we aren’t putting the parents on the deed. Medicaid will force a sale if they own the place outright, and I don’t know how it works if it’s owned in a joint situation.