How Can I Purchase Home Currently Held in Life Estate

**tatorchip** · 08-31-2012, 11:02 AM

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

My Great Aunt setup a Life Estate naming her 2 children as remainderman. She has Alzheimer's and is in a facility with no possibility of returning to the home.

The children (my cousins) would like to sell me the home if possible. From poking around online there are two ways I could see this happening. First would be for us to do a lease purchase agreement for say 10 years (her life expectancy is probably 5 years max) and once she passes go through with the sale at that point. The other option would be for the remaindermen to sell their interest to me at this point.

Is one option better than the other or is there a better way that I haven't thought of our found through my internet searching.

jk · 08-31-2012, 11:23 AM

You have to realize that Great Aunt still has a life estate in the property. Nobody can simply terminate that without some action.

as to your different actions to purchase the home; it really doesn't make any difference. Neither one will allow you to take possession right now. Whatever you and the remainedermen choose to do is what you do.

Personally, I would look to the outright purchase option. I see no reason to lease the premises unless you need to do that so you can finance the property, which is not likely to happen while there is an existing life estate.

**Mr. Knowitall** · 08-31-2012, 12:04 PM

Does your great aunt have somebody who, whether through designation via a power of attorney or through court appointment, is empowered to manage her assets and estate? If the former, what powers have been granted to that person in relation to your great aunt's real estate?

**tatorchip** · 09-03-2012, 06:42 PM

It is my understanding that one or both of her children are both power of attorney and the remaindermen. They would ideally like to sell the house if possible and I would like to buy the house if possible. The thing we are unsure of is if there is any way to possibly do that before my great aunt passes.

They are wanting monthly cash to help support their mother in the facility she is in and I want to not be paying rent but rather paying toward the cost of the house. They are willing to self finance the house for this reason. Also they don't want to have the responsibilities of being a landlord and having to fix problems that arise at the house.

All parties involved want the same thing, but at the end of the day can the property be sold or "virtually sold"* before her passing?

*By virtually sold I mean I can make payments and be assured that as long as I hold up my contractual responsibilities I can obtain ownership at the time of her death.

**Mr. Knowitall** · 09-03-2012, 07:07 PM

Either somebody has the authority to transfer your aunt's life estate or not; and if not, either somebody is willing to seek court appointment as guardian and get court permission to sell the life estate or they are not. If they are not, there is nobody who is in a position to transfer your aunt's interest in the property to you.