What is a lifetime estate in a property?

[BelizeBreeze]

Okay but the property was given to me in the trust, it's my house I just have to let her live there? And what you are saying is that the trust doesn't have to pay the taxes, what about the insurance and utilities?

What are you looking for, legal representation from the internet?

You have been given your answers. More you need to sit down with an attorney.

Geeez

 

[seniorjudge]

Q: I would like to know what the boundaries of a lifetime estate are

A: For the life of the person who has the estate.

I answered your question here.

You can even if all day long but the answer doesn't change.

 

[divgradcurl]

Okay but the property was given to me in the trust, it's my house I just have to let her live there? And what you are saying is that the trust doesn't have to pay the taxes, what about the insurance and utilities?

No, if a life estate was reserved, then the property wasn't given to you in the sense that you "own" the property and you just have to let her live there. You are not a landlord. You have an interest in the property, that is certain, but the interest is a future interest, not a present interest. I realize that this stuff is kind of complicated, but really the only interest you have in the property right now is that the property must be returned to you someday -- when the life tenant dies -- in good condition.

Utilities would likely be the responsibility of the life tenant, whereas the insurance would likely be the repsonsibility of the remainderman (you), since it is their future interest that the insurance is protecting. However, this can be changed if the trust is specific on these points.

You might want to consider taking the trust documents down to a local attorney for review -- we can only opine based on what you have written, and attorney who has access to all of the facts might see something that changes this situation from that of a standard life estate problem.

 

[sassymeadows]

No, if a life estate was reserved, then the property wasn't given to you in the sense that you "own" the property and you just have to let her live there. You are not a landlord. You have an interest in the property, that is certain, but the interest is a future interest, not a present interest. I realize that this stuff is kind of complicated, but really the only interest you have in the property right now is that the property must be returned to you someday -- when the life tenant dies -- in good condition.

Utilities would likely be the responsibility of the life tenant, whereas the insurance would likely be the repsonsibility of the remainderman (you), since it is their future interest that the insurance is protecting. However, this can be changed if the trust is specific on these points.

You might want to consider taking the trust documents down to a local attorney for review -- we can only opine based on what you have written, and attorney who has access to all of the facts might see something that changes this situation from that of a standard life estate problem.

I truly appreciate your help in all of this, you are the only one who has come close to giving me a full description of the problems of a lifetime estate. I would love to see an actual definition and description of the requirements and restrictions. I am working with an attorney on all of this but I was just looking for some advise a little faster than they are working.

 

[sassymeadows]

I answered your question here.

You can even if all day long but the answer doesn't change.

No you didn't answer my question, you told me what I already knew.......till she dies. I was looking for more indepth information. Like when can she move in, what can we do, what are my responsibilities, etc.

 

[seniorjudge]

No you didn't answer my question, you told me what I already knew.......till she dies. I was looking for more indepth information. Like when can she move in, what can we do, what are my responsibilities, etc.

Google

real estate "life estate"

exactly like that. You will find tons of stuff.

 

[sassymeadows]

Belize

What are you looking for, legal representation from the internet?

You have been given your answers. More you need to sit down with an attorney.

Geeez

I didn't mean to take up so much space here I was just trying to get one question answered and it seems I was asking it the wrong way.

I just wanted to find out what a lifetime estate was, not a retained life estate but rather if I was setting up a trust for myself and I went to an attorney what would they tell me about a lifetime estate. Can it be given to anyone, can they move in and out as they please, who has financial responsibility for the property.....taxes, maintenance, insurance, etc.

There are plenty of difinitions regarding retained life estates, but not much and not very clear on someone not living in the house or not related to the owner of the home getting a lifetime estate. Even a direction to some information there would have been enough. Seniorjudge gave me a link but that was for retained .....

That's all I was looking for Belize, something to inform myself so that when I do meet with the lawyers I will be a little more prepared and not so shocked.

 

[seniorjudge]

A retained life estate and a lifetime estate are one and the same critter.

 

[sassymeadows]

A retained life estate and a lifetime estate are one and the same critter.

No they aren't, the difference being a retained lifetime estate goes to the person who originally owned the house and is currently living there. This lifetime estate has gone to a woman who never lived there and has just walked in a changed the locks, all of our families things are still in there and we haven't even finished reading the will.

 

[seniorjudge]

No they aren't, the difference being a retained lifetime estate goes to the person who originally owned the house and is currently living there. This lifetime estate has gone to a woman who never lived there and has just walked in a changed the locks, all of our families things are still in there and we haven't even finished reading the will.

Must be a long will.

Okay, the difference in the terms is in HOW you get a life estate. The end result is the same.

John Doe sells to Mary Roe and reserves (or retains) a life estate. John is life tenant and Mary is remainderman.

John Doe sells a life estate to Mary Roe. John is remainderman and Mary is life tenant.

 

[divgradcurl]

Must be a long will.

Okay, the difference in the terms is in HOW you get a life estate. The end result is the same.

John Doe sells to Mary Roe and reserves (or retains) a life estate. John is life tenant and Mary is remainderman.

John Doe sells a life estate to Mary Roe. John is remainderman and Mary is life tenant.

Hey seniorjudge, not to get nitpicky (and maybe I don't remember my property class that well), but in the case of John Doe selling a life estate to Mary Roe, wouldn't John simply retain a reversionary interest in the property, rather than being a remainderman? If the property was "to Jane for life, then to Jim" then Jane is thelife tenant and Jim is the remainderman -- but if its just "to Jane for life" then the original owner retains a reversionary interest.

I bring this up also to pointout to the OP just how complex and nit-picky these issues can get -- and which is why the OP should talk with his lawyer, you can review ALL of the facts, and be in the best position to provide and advice...

 

[seniorjudge]

Hey seniorjudge, not to get nitpicky (and maybe I don't remember my property class that well), but in the case of John Doe selling a life estate to Mary Roe, wouldn't John simply retain a reversionary interest in the property, rather than being a remainderman? If the property was "to Jane for life, then to Jim" then Jane is thelife tenant and Jim is the remainderman -- but if its just "to Jane for life" then the original owner retains a reversionary interest.

I bring this up also to pointout to the OP just how complex and nit-picky these issues can get -- and which is why the OP should talk with his lawyer, you can review ALL of the facts, and be in the best position to provide and advice...

Good question and I am not really sure how you would classify that.

It's not really a "reversionary" interest since there is nothing to revert. He has the present and possessory interest.

I called him a remainderman in that instance, but if somebody with more knowledge of future interests than I have would tell me something different, I would listen.

 

[divgradcurl]

Good question and I am not really sure how you would classify that.

It's not really a "reversionary" interest since there is nothing to revert. He has the present and possessory interest.

I called him a remainderman in that instance, but if somebody with more knowledge of future interests than I have would tell me something different, I would listen.

Hey seniorjudge, I said he has a reversionary interest, beceause after the life estate ends, the property reverts back to him. He doesn't have a possessory interest because while the life tenent is alive, he has no right to possess the estate -- only the life tenant has a possessory interest. Ouch, my brain is starting to hurt...

Yeah, we need a future interests expert here to settle this once and for all...

 

[seniorjudge]

Hey seniorjudge, I said he has a reversionary interest, beceause after the life estate ends, the property reverts back to him. He doesn't have a possessory interest because while the life tenent is alive, he has no right to possess the estate -- only the life tenant has a possessory interest. Ouch, my brain is starting to hurt...

Yeah, we need a future interests expert here to settle this once and for all...

I think my rule against perpetuities is acting up....