Selling home in Life Estate and question about Will

[lws0813]

What is the name of your state (only U.S. law)? North Carolina

My mother in-law's will states that there are to be deductions made from 2 of her 4 children's inheritance due to money that she had given them in the past. She also put her home into a Life Estate giving her 4 children equal shares as the remaindermen. She is now in an assisted living home and 1 of her children has been appointed guardian. The general guardian has informed the other 3 children that the home needs to be sold to help pay for the assisted living home. All children agreed to the sale. There are ill feelings between the siblings and a lack of trust because they didn't all agree on their mother being placed in the assisted living facility.

My question is, can the deductions stated in the Will be brought into effect when the home is sold?

 

[ecmst12]

The money from the sale of the home will be mom's as long as she's around and be used to pay for her care. If there's any left when she passes, then the deductions would be taken into account (depending on the wording of the will of course). You won't be able to distribute any of the money from the home sale before then because it needs to be used to pay for her care.

 

[lws0813]

The money from the sale of the home will be mom's as long as she's around and be used to pay for her care. If there's any left when she passes, then the deductions would be taken into account (depending on the wording of the will of course). You won't be able to distribute any of the money from the home sale before then because it needs to be used to pay for her care.

I am a bit confused. According to the Interest Table, my mother in-law's percent of the Life Estate is .38642 with the remainder being .61358.

 

[anteater]

I am a bit confused. According to the Interest Table, my mother in-law's percent of the Life Estate is .38642 with the remainder being .61358.

So, the children are going to take whatever their remainder interests are worth at sale? They aren't going to waive their remainder interests?

Nevertheless, I can't see an argument for deducting those inheritance advancements from the proceeds from the sale of the house. The will's provisions affect the distribution of the net probate estate assets. Since mother-in-law chose the transfer with retained life estate route for the house, the house would not be a probate asset.

 

[latigo]

The money from the sale of the home will be mom's as long as she's around and be used to pay for her care. If there's any left when she passes, then the deductions would be taken into account (depending on the wording of the will of course). You won't be able to distribute any of the money from the home sale before then because it needs to be used to pay for her care.

Interesting analysis.

However, it seems to have overlooked the conspicuous fact that neither the OP’s mother-in-law, nor the guardian of her estate is positioned to convey fee simple title to the home.

"She also put her home into a Life Estate giving her 4 children equal shares as the remaindermen."

So, perhaps you would you care to venture another guess as to how many "eager buyers" might be queued to purchase this elderly woman’s life estate interest?

My guess is none with the consequence being (unless there are other unmentioned assets) that there will be nothing in the ward’s estate to pay for her care.

You also seem to have ignored the fact that whether the home is sold prior to the life tenant’s death or not, nothing of it will remain to be distributed through probate. Hence rendering unmeaningful any discussions about managing “deductions from inheritance”.