Results 1 to 5 of 5
  1. #1
    Join Date
    Jan 2012
    Posts
    4

    Default Remainderman Needs Help Dealing with Life Tenant

    My question involves real estate located in the State of: Oregon

    My two brothers and I am the Remainderman of a Life Estate of our late mothers home and have many questions concerning our rights and how to deal with the Life Tenant who is the my mom’s late husband of the last 9 years of her life. The house and most everything in it was bought before my mom’s marriage to the Life Tenant and paid in full when bought. During their marriage, the Life Tenant contributed nothing (financially) to the house or expenses connected to the house. The one thing we are clear on is that moms surviving husband does have a Life Estate on the house for the rest of his life and will be referred to the Life Tenant during this thread. The Life Tenant had never been easy to deal with and since moms death, has even been more difficult to deal with. Most of the furniture (including many family antiques) according to the Prenub agreement belong to the Family Trust (my two brothers and me) but are to remain in the house for the use of the Life Tenant.
    We have many questions concerning our rights and responsibilities as Remainderman and also have questions concerning the Life Tenants duties and how to ensure they are carried out. We have consulted the attorney we are using for the estate, but he had not clearly answered many of our questions. Am hopeful I can get some of our questions answered here. One more piece of information is that the Life Tenant has told us he intends to move out of the house in the near future as it is too much for him to take care of and wants to sell the house so he can have money to use to move into a retirement center. He feels he should get at least 50% of the sale of the house. The Life Tenant also said there is an upcoming bill due for the property taxes and wants to know how they are to be paid.

    1. Who is responsible for what expenses connected to the house? We believe the Life tenant is responsible for the property taxes, utilities, and routine maintenance. Is that correct? We are not sure who is responsible for property insurance? Is there anything else the Life Tenant is responsible for? What are we (Remainderman) responsible for?

    2. What recourse do we have if the Life Tenant fails to meet his responsibilities from question #1?

    3. Can the Life Tenant legally have others live in the house? Does that change anything concerning the life estate? Can the Life Tenant rent the house out and keep the rent money? If the Life Tenant leaves the house, does the furniture and other things of ours he is “using” have to stay for others to use or can we remove them? Upon the Life Tenants death, if others are living in the house, how long do they have to leave?

    4. If the Life Tenant want to sell the house (to get “his” money) can he force us to sell? (our attorney said NO) However, if we agree to sell (while the Life Tenant is still alive) what if anything does the Life Tenant receive from the sale of the house? (our attorney was less clear on this and said it was up to a “life estate arbitrator.”) Where do we get a Life Estate Arbitrator and is there a way to get an approximate value of how much from the sale of the house the Life Tenant is likely to receive before agreeing to the actual sale of the house?

    I suspect I may know some of the answers I am likely to receive, but want to see what all of you may answer before going on with any further questions. Depending upon what answers I receive, I am likely to have more specific questions on the answers I receive.

    Thank you in advance to all that answer my questions.

  2. #2
    Join Date
    Jan 2006
    Posts
    27,109

    Default Re: Remainderman Needs Help Dealing with Life Tenant

    One more piece of information is that the Life Tenant has told us he intends to move out of the house in the near future as it is too much for him to take care of and wants to sell the house so he can have money to use to move into a retirement center.
    He feels he should get at least 50% of the sale of the house. The Life Tenant also said there is an upcoming bill due for the property taxes and wants to know how they are to be paid.
    he has nothing to say about the property being sold. He cannot sell it. He has no ownership interest. He can sell his interest which would basically allow somebody else to live there for the life of your step father (stands in his place)



    1. Who is responsible for what expenses connected to the house? We believe the Life tenant is responsible for the property taxes, utilities, and routine maintenance. Is that correct?
    yes

    We are not sure who is responsible for property insurance?
    well, it's like this:

    he is responsible for the building should his negligence cause damage. That means; if he burns the house down by lighting fireworks in the bedroom, he owes you for the damage. Can he pay you, out of his pocket, if the house burned down due to his fault?

    If he is not negligent, he doesn't owe you anything. That means, if the house is hit by lightning and burns down and he did not purchase insurance, everybody is out the house. It would be wise for you to purchase insurance to cover any possible losses you have.




    Is there anything else the Life Tenant is responsible for? What are we (Remainderman) responsible for?
    Is there a mortgage loan on the property?

    2. What recourse do we have if the Life Tenant fails to meet his responsibilities from question #1?
    Unless the loss of utilities causes some loss, that means nothing. As to the other two: you would sue to terminate the tenancy based on he causing waste.

    3. Can the Life Tenant legally have others live in the house?
    yes

    Does that change anything concerning the life estate?
    no

    Can the Life Tenant rent the house out and keep the rent money?
    yes

    If the Life Tenant leaves the house, does the furniture and other things of ours he is “using” have to stay for others to use or can we remove them? Upon the Life Tenants death, if others are living in the house, how long do they have to leave?
    apparently the property must remain in the house for the duration of the tenancy. If others are living in the house at the time of death of the life tenant, their tenancy terminates as well but you would have to evict them if they would not move willingly.

    4. If the Life Tenant want to sell the house (to get “his” money) can he force us to sell?
    NO

    (our attorney said NO) However, if we agree to sell (while the Life Tenant is still alive) what if anything does the Life Tenant receive from the sale of the house?
    nothing. He gets to remain in the house for the duration of his life. Now, if you are talking about buying out his tenancy, you would have to have the value of his tenancy calculated by an actuarial or negotiate an amount.

    Where do we get a Life Estate Arbitrator and is there a way to get an approximate value of how much from the sale of the house the Life Tenant is likely to receive before agreeing to the actual sale of the house?
    Yes. Hire an actuarial to do a study.

  3. #3
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    14,039

    Default Re: Remainderman Needs Help Dealing with Life Tenant

    Only thing I disagree with JK on, is the furniture. Depending on how it is worded, you may have the right to remove and store the furniture etc, if the life tenant moves out. You would be required to return it to the house, if the life tenant returns to live there, so it is available for his use.

  4. #4
    Join Date
    Jan 2012
    Posts
    4

    Default Re: Remainderman Needs Help Dealing with Life Tenant

    Thank you for your answers.

    Further comments/questions:

    Quote Quoting jk
    View Post
    Is there a mortgage loan on the property?
    No mortgage, the house was bought with cash.

    Still have questions concerning our responsibilities as the remainderman. Specifically, from what I have been able to find out, we are responsible for major repairs as opposed to the Life Tenant being responsible for routine maintenance. The line between routine maintenance and major repairs is not totally clear to me. For example: Is painting (interior and exterior) routine or major? New Carpet, new water heater, or sealing cracks in the driveway, routine or major? What if the furnace quits and needs repaired or replaced, routine or major? Roof leaks and needs repair or replaced, routine or major? From experience, the Life Tenant will not be easy to work with and will not want to pay for anything, but will insist every little thing will needs attention and will want us to pay for it. Need to know where we really stand in case push comes to shove and legal action becomes necessary.

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    14,039

    Default Re: Remainderman Needs Help Dealing with Life Tenant

    For example: Is painting (interior and exterior) routine or major? New Carpet, new water heater, or sealing cracks in the driveway, routine or major? What if the furnace quits and needs repaired or replaced, routine or major? Roof leaks and needs repair or replaced, routine or major?
    IMHO
    Keeping it in context, exterior painting, required to protect the outer structure is major. Because you if don't like the color is elective. New carpet, is not needed to protect the integrity of the structure, it is elective. A new hot water heater, for a life tenant, I would deem routine, as they periodically need changed. A furnace, protects the value of the structure. If it is shot, major. If it needs repaired, routine. Roof leaks are major, no question. Driveway sealing is major. Choose to do it, or let the drive breakdown, your choice.

    1. Sponsored Links
       

Similar Threads

  1. Life Estates: Life Estate - Obligations of Life Tenant vs. Remainderman
    By confused1077 in forum Ownership and Title
    Replies: 2
    Last Post: 12-05-2009, 12:29 PM
  2. Life Estates: Translation on Life Tenant/Remainderman
    By JoRaffe in forum Ownership and Title
    Replies: 1
    Last Post: 08-08-2009, 05:37 PM
  3. Life Estates: Remainderman Died Before Life Tenant
    By avidmil in forum Ownership and Title
    Replies: 5
    Last Post: 09-26-2008, 06:33 AM
  4. Life Estates: Life tenant vs remainderman
    By salerep101 in forum Ownership and Title
    Replies: 1
    Last Post: 08-20-2005, 11:48 AM
  5. Life Tenant and Rights of Remainderman
    By westonvance2 in forum Estate Administration and Probate
    Replies: 5
    Last Post: 03-19-2005, 12:29 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Real Estate Forms
Real estate forms and contracts, state specific, immediate download.




Untitled Document