Lifetime Right of Occupancy Residential Real Property Questions ?

[TrustProblems]

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

Hello,

My dad has passed away and he had a living trust. My dad had re-married and gave his wife a lifetime right of occupancy of a residential real property. It says if she should fail to occupy the property for any reason then it will be distributed in equal shares to the beneficiaries.

Nothing in the trust spells out who is responsible for the property taxes, maintenance, etc.

Who would pay property taxes ?

Who would be responsible for maintenance of the property if anything breaks or needs fixing ?

Thanks!

 

[LdiJ]

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

Hello,

I am reading the revocable living trust of which I am a beneficiary. My dad had re-married and gave his wife a lifetime right of occupancy of a residential real property. It says if she should fail to occupy the property for any reason then it will be distributed in equal shares to the beneficiaries.

Nothing in the trust spells out who is responsible for the property taxes, maintenance, etc.

Who would pay property taxes ?

Who would be responsible for maintenance of the property if anything breaks or needs fixing ?

Thanks!

Generally the person with the life estate (right to occupy for their lifetime) would be responsible for those things. However, if she realistically cannot pay those things, then the remaindermen, (the beneficiaries) might have to step up to protect their future asset.

 

[justalayman]

Not saying ldij is incorrect but this is not a typical life estate. It appears that the ownership remains vested in the trust rather than the remaindermeN. It does not in create the same sort of relationship as a deeded life estate would. I would have to do some searching before giving any answer though.

I am guessing that your father has already passed away? Not certain since you did start out with stating it was a revocable trust which obviously becomes irrevocable once the trustor passes. If he has passed it matters not that it was a revocable trust since now it is an irrevocable trust.

If it is still a revocable trust, ask dad to clarify the rules of the trust before it is in play.

 

[LdiJ]

Not saying ldij is incorrect but this is not a typical life estate. It appears that the ownership remains vested in the trust rather than the remaindermeN. It does not in create the same sort of relationship as a deeded life estate would. I would have to do some searching before giving any answer though.

I am guessing that your father has already passed away? Not certain since you did start out with stating it was a revocable trust which obviously becomes irrevocable once the trustor passes. If he has passed it matters not that it was a revocable trust since now it is an irrevocable trust.

If it is still a revocable trust, ask dad to clarify the rules of the trust before it is in play.

I did say "generally". However in a life estate situation it would not matter if a trust happened to be the remainderman.

 

[justalayman]

I did say "generally". However in a life estate situation it would not matter if a trust happened to be the remainderman.

If the trust is the remainderman then I would agree with you. For some unknown reason I suspect the trust simply retained title with not a deeded life estate but simply permission to occupy the property. Since the property was already in the trusts name, it seems a waste of effort to create a life estate via deed only to have it revert back to the trust once the life tenancy ceased.

Maybe the op will provide some more info.

 

[TrustProblems]

Not saying ldij is incorrect but this is not a typical life estate. It appears that the ownership remains vested in the trust rather than the remaindermeN. It does not in create the same sort of relationship as a deeded life estate would. I would have to do some searching before giving any answer though.

I am guessing that your father has already passed away? Not certain since you did start out with stating it was a revocable trust which obviously becomes irrevocable once the trustor passes. If he has passed it matters not that it was a revocable trust since now it is an irrevocable trust.

If it is still a revocable trust, ask dad to clarify the rules of the trust before it is in play.

Sorry, yes my father has passed.

 

[TrustProblems]

If the trust is the remainderman then I would agree with you. For some unknown reason I suspect the trust simply retained title with not a deeded life estate but simply permission to occupy the property. Since the property was already in the trusts name, it seems a waste of effort to create a life estate via deed only to have it revert back to the trust once the life tenancy ceased.

Maybe the op will provide some more info.

What info can help here ?

I don't see any wording as to "remainderman" in the trust ?

It does say if she fails to occupy the residence, then the proprty shall be distributed in equal shares and free of trust to the beneficiaries.

So still wondering who pays taxes and maintenance on the property ?

Thanks!

 

[LdiJ]

What info can help here ?

I don't see any wording as to "remainderman" in the trust ?

It does say if she fails to occupy the residence, then the proprty shall be distributed in equal shares and free of trust to the beneficiaries.

So still wondering who pays taxes and maintenance on the property ?

Thanks!

You are going to have to have a local attorney review the trust and answer that question.

 

[justalayman]

Does title in the property remain with the trust or was there a deed executed granting her a life estate?

If the former I believe you will end up at an attorneys office. If the latter: she is responsible for general maintenance, utikities, taxes, and usually the interest on any mortgage in place. The remaindermen would be liable for the principle of a mortgage and major repairs are often split between the two Parties charging the tenant a pro rata share of the expense based on their remaining tenancy.

 

[TrustProblems]

You are going to have to have a local attorney review the trust and answer that question.

Why a local attorney ?

I am not local anymore. When spouse moves the house it will be distributed to beneficiaries. Other than that I don't see much more written, although what I was given was only 18 pages. Maybe there is more to the trust ?

 

[TrustProblems]

Does title in the property remain with the trust or was there a deed executed granting her a life estate?

Nothing has been done yet. Wouldn't the executor be responsible for doing this ?

The executor does not know the proper action.

If the former I believe you will end up at an attorneys office.

What will the attorneys office do ? I mean is this something we must fight about or is it a grey area to be litigated ?

If so, why would an attorney right up a trust that would leave such a flaw ?

If the latter: she is responsible for general maintenance, utilities, taxes, and usually the interest on any mortgage in place.

The remaindermen would be liable for the principle of a mortgage and major repairs are often split between the two Parties charging the tenant a pro rata share of the expense based on their remaining tenancy.

How do they figure the remaining tenancy ? I am curious how that calculation would be done.

 

[LdiJ]

Why a local attorney ?

I am not local anymore. When spouse moves the house it will be distributed to beneficiaries. Other than that I don't see much more written, although what I was given was only 18 pages. Maybe there is more to the trust ?

You need someone local to you who can read the trust.

 

[TrustProblems]

You need someone local to you who can read the trust.

Why local to me and not local to where the trust originated ?

I have read everything in the trust, does the attorney read more than I can see ?

 

[LdiJ]

Why local to me and not local to where the trust originated ?

I have read everything in the trust, does the attorney read more than I can see ?

Because you need someone who understands the law and legalese to read it and make sure that you are interpreting it correctly. Yes, someone in the state where it originated might be able to correlate it better to that state's laws, but any attorney is going to be able to interpret what it says properly.

 

[justalayman]

There are two locales that can make a difference.

The most important locale, actually kind of two localities in itself is the state the trust was created in and secondly the state where any action concerning the trust is taking place. The first is important because the laws under which it was written can affect how any interpretation is made. Then the second state is important as the laws of whatever state any legal action might be taken concerning the trust is important as it can affect the interpretation of the terms as well as the implementation of the terms.


Then, why an attorney local to you is important is, regardless of what form of communication with a distant attorney you may have, it is impossible to equal the communication you have when setting face to face with a person. Conversation, with all the nuances of voice inflection as well as physical cues allow for a conversation with a much better level of understanding of both parties by the other.


Regarding you having read the trust and your question;

If you are asking an attorney to give you an opinion, the first thing they need to do is read any concerned document in its entirety. You having read it will allow you to form questions and determine what answers you are looking for but you conveying anything then the complete and exact verbiage of the document will not allow the attorney to be able to understand the document in full and be able to provide you with the most accurate answers. Without the ability to read the entire contract you are asking the attorney to give an opinion based on your interpretation of the section but you are also asking them to give you an opinion without the ability to determine if there is some other section in the contract that could completely alter what you read to them.

So, you having read it is important but the attorney reading it, in whole, is critical to receiving a valid response.