![]() Are You Looking for an Estate Planning Attorney in Texarkana, TX? This does not mean a life estate cannot go right, but there are so many things that can go wrong even if you don't expect a squabble among family members. What happens when the house catches fire or is broken into? The insurance check will go to the kids and they may pocket it for future use when the estate becomes theirs. In some cases, the future owner will pay the taxes and insurance to make sure that their future interest keeps its value. However, they cannot do anything to the property in the present. When the property starts rapidly declining in value, the future owner will want to protect their future interest. What happens when the person who is living there decides not to pay the property taxes or chooses not to repair the roof? What if they move into a nursing home and the estate is left empty? Cannot use the property while Party One is alive.The Conflicting DilemmaĮssentially, with a life estate you have a situation where one party has a right to use and occupy, or use and enjoy, something for their lifetime while somebody else actually has an ownership interest in the property that they just can’t do anything with because the first person has a right to use it. Unlike a will, this cannot be changed by the parents in the future. With a life estate, the kids do own the property in a sense. ![]() In a case where the kids have the future ownership, then they own that remainder interest. In short, you have given away the future ownership. You retain the right to live and use the property as long as you’re alive. What a life estate does is give the ownership of the estate to someone else in the future. Not only can you divide up the different types of things one can own, but you can also divide up the time period that you own it, present or future. Under a normal will, you can divide up pieces of your estate: the trees, minerals, water, air, structures on the dirt, etc. This Is Where Life Estate Opens Up a Can of Worms What can she do with the property and money?.What does this mean for the wife who is currently living?.The questions the kids wanted to be answered: After the wife passed away, the children would be the new owners of the estate. The kids were called remaindermen or remainder interest holders. He’d owned his home prior to marrying this wife, and he left a life estate in his bank account to his present wife. Dad was in his 90s, so these kids were in their 60s and 70s.ĭad had made a will, and left his present wife a life estate. Recently, I had a family come in who had just lost their dad. ![]() This land can be passed down from person to person. For some early context, a Life Estate is the ownership of the land for a person’s life. ![]()
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