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Life Estate

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helpneeded4me

Guest
NC, mother 67, 2 children both married. My husband at the time convinced my mother to create a life estate, in the document it lists on only us 2 children as the Grantee's but also each spouse.
Worded, x x and wife xx.
Now that we are divorced of course I do not nor does my mother want my ex spouse to have 1/4 interest in the property. He is the one that set this all up and my mother signed it, he did not tell my mother it was irrevocable? I nor my brother had no idea it was irrevocable. This was suppose to be done for "tax" purposes but now appears to have been chosen to protect my ex husband that claims this is irrevocable? It does not say anywhere on the deed that it is irrevocable? how do i find this out?
All the reading i have done since shows that a life estate is usually reserved for a charitable contribution so the Grantor can get some tax benefits while still living, therefor resorting to an irrevocable situation. What am I to do? My mother is furious as am I of course, this was a trusted individual at one time but now it seems as if he knew what he was doing. Is this only my opinion since I am now divorced from him and cannot stand him or was he looking out for our best interest at the time? I would think that only my and my brothers names would be on the document and then our spouse (at the time of death) would also be included because they were married to us? Please help.
 


ALawyer

Senior Member
While it may be possible for your mother to file an action seeking to rescind or reform the deed, on the basis that it was procured by fraud or mistake -- such as reliance on intentioanlly false information he gave -- you'd need a lawyer to assist you.

And you might not win, as often a gift is a gift and there are "no backs". But a good lawyer for you would have a good argument, so you may win.

Most likely with a lawyer's help you at least you could settle it -- perhaps buying him off for 1/4 the actuarially adjusted value of the property less the deduction for the value of the life estate. In order to really eventally inherit, assuming the deed gave the property in joint tenancy with rights of survivorship, he'd need to outlive the 3 other people who own the property. So some cash now may make him go away, and it may be cheaper than a court fight to buy him off. Or you could buy a cupie doll and stick pins in it and hope he dies.
 
H

helpneeded4me

Guest
Thanks for your reply on this mess!
All the document says is, " The grantor reserves for herself a life estate in the whithn described parcel for the life of the grantor"

this next line is typed in under the list of the 4 grantee's:
" the remainder interest subject to a life estate in the grantor"

My other question is: all the reading i have done is that you use a "life estate" to give property to a cheritable organization and reap the tax benefits while still alive? that is why it is irrevocable.
If you want to do this you use a living trust so it can be changed ?
Can anyone give me any reason that this would be used in this situation other than deceitful?

Thanks again.
 

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