Joint life estates-What if one dies?

[Jessie]

My father purchased 1/2 interest in 4 acres in Tn for the benefit of my daughter in 1991. He purchased it from my daughter's mother-in-law's brother. My father wanted my daughter and her husband to have possession of the property at his death, so he gave his half in a life estate to my daughter and the mother-in-law gave her half in a life estate to her son (my daughter's husband). In 1993 my father died without a will and I (being his only child) became Executrix of the Estate. The question now is, who does my fathers half go to? Me, my daughter and her husband or the mother-in-law?

 

[Tracey]

Daughter still has a life estate (until SHE dies, not your dad). Dad's estate has a "reversionary interest" in 1/2 of the property. Since he's intestate, this likely goes to you (don't know TN laws off top of head).

You can will the reversionary interest to anyone you like. When your daughter dies, the reversionary interest becomes outright ownership for whoever holds it at the time. This could be 70 years away, so no telling who will get it.

If you will your reversionary interest to your daughter, her reversion and life estate may "merge" into outright ownership right then. Check with an estate lawyer about this.

Tracey

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.