Re: Quit Claim Deed with Life Estate and Succeeding Life Estate - Who Has What Rights
it would make brother number #3 a life tenant. Nothing more, nothing less.
would the two asterisked (*) sections in the original post make Brother #3 sole rights holder until he passed away,
Huh? Why and how is bro #2 renting out the property? It is bro #3's who has that right and is due the income from the property. It is also bro #3's liability to pay the taxes.
I'm preparing a tax return for Brother #2, and he's the only one I know in this situation. Brother #2 received section 8 housing benefits for renting the property in 2011, and has historically paid the property taxes.
but as Ron stated, a dead person cannot convey property rights so how title was held prior to her death is important but so is the fact the deed may be ruled defective since is purports to convey the rights of a deceased person. If that happens, it changes everything and the property would then be put back into the father's estate and divided either per a will, if there was one, or by the laws of intestate succession.
so, accepting a situation where the deed was allowed to rule:
nobody has any current interest in the property until bro #3 dies or unless bro #3 allows it. Since you are dealing with bro #2's tax issues, what happens to sisters interest is irrelevant.
since you are doing bro #2's taxes, ownership is kind of irrelevant. If bro #2 received money, it is income to him. He can account for it however is factual. In other words, if I rent out my neighbors house (without permission from them) while they are in Africa for a 2 year sabbatical, that income is charged to me even though it was illegally obtained. What happens between me and the neighbor does not affect the income I received as far as the IRS is concerned. Whether they would chose to take some action against me does not affect the fact I have income derived from renting out some property.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.