• Question
  • Life estate rights

    Asked by someone from Paynesville, MN on 2/25/2013

    Property is owned 50% by mother and 50%by 4 siblings. Mother signed life estate and name is not on cert. of title.Property is for sale what is mother's rights as far as sale and does she get 50% check for sale?

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  • Categories: Retirement Planning, Downsizing/Relocation, Relationships, Housing, Estate Planning

Answers

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  • A Life Estate is a type of ownership where an individual has an interest in the use of the property for their lifetime. Then the interest reverts back to the original owner. It is a legal arrangement for property than can be used to transfer use automatically upon a person’s death, not through probate. The holder of the life estate typically has no rights to leave the property to heirs through their will, just the rights to use and enjoy the property for their lifetime. Both the tenants and the remainder beneficiaries have interests in the property; they are just at different times. Generally, the tenant has the current right to use and enjoy the property, and the remainder beneficiary has the right to use and enjoy the property upon the death of the tenant.

    When property in a life estate is sold, it can be very complicated since multiple parties and interests are involved. It is possible that the property can be sold with the consent of the life estate holder, but it likely depends on your legal agreement as to the value the life estate holder might receive. A licensed estate attorney should be contacted to help provide advice and guidance for your unique situation.

    This answer is provided as general information only from students pursuing a Master’s degree in Personal Financial Planning from Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial Planner TM as to your unique financial situation.

  • Login to rate this answer:   Answered on 3/18/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.