Florida life estate laws

[dunes_ny]

Howdy all, I have some general questions regarding the rights/responsibilites of a person exercising a florida life estate.

Five years ago my father passed away, willing his Florida home to me and my sister. He was marrried at the time for 3 years (the home was fully paid for before he got married), so his widow was awarded a life estate.

She has been living in the house and paying bills/taxes since that time. She now has contacted us in hopes of selling the home (estimated value $500k) and wants a ridiculous share of the sale. My sister and I believe she is having trouble maintaining the house and wants to move to another state where her children live (she already owns a house in that state). My sister and I believe she should not profit from the sale, since she never paid for house in the first place and it was willed to us.

The questions I have are:

1. Can she legally rent the house and profit from it without owning it?
2. Is she required to pay for disaster insurance (fire and flood)?
3. Is she required to allow us on the property so we can inspect it?

Thank you for any help you can provide.

[BlondiePB]

Howdy all, I have some general questions regarding the rights/responsibilites of a person exercising a florida life estate.

Five years ago my father passed away, willing his Florida home to me and my sister. He was marrried at the time for 3 years (the home was fully paid for before he got married), so his widow was awarded a life estate.

She has been living in the house and paying bills/taxes since that time. She now has contacted us in hopes of selling the home (estimated value $500k) and wants a ridiculous share of the sale. My sister and I believe she is having trouble maintaining the house and wants to move to another state where her children live (she already owns a house in that state). My sister and I believe she should not profit from the sale, since she never paid for house in the first place and it was willed to us.

The questions I have are:

1. Can she legally rent the house and profit from it without owning it?
2. Is she required to pay for disaster insurance (fire and flood)?
3. Is she required to allow us on the property so we can inspect it?

Thank you for any help you can provide.

She is not entitled to any monies from selling the home. Read your deed/documents very thoroughly. A person granted a life estate, typically, is the one who is responsible for taxes, insurance, etc.

689.17 Rule in Shelley's Case abolished.--The rule in Shelley's Case is hereby abolished. Any instrument purporting to create an estate for life in a person with remainder to her or his heirs, lawful heirs, heirs of her or his body or to her or his heirs described by words of similar import, shall be deemed to create an estate for life with remainder per stirpes to the life tenant's lineal descendants in being at the time said life estate commences, but said remainder shall be subject to open and to take in per stirpes other lineal descendants of the life tenant who come into being during the continuance of said life estate.

History.--s. 2, ch. 23126, 1945; s. 758, ch. 97-102.



You can read more about FL Real Estate Statutes (Chpt.689) here.

[lwpat]

She can move and rent the house. In most states the life tenant has to carry the insurance but check with a Florida attorney. She does have to pay the taxes unless otherwise provided. You can have access to be sure the house is being maintained.

If you want to sell the house you will have to purchase the life estate whether you like it or not or wait until she dies. Make her a fair counter offer and move on. Figure her normal life expectancy times the fair rental less taxes, insurance and upkeep.

[BlondiePB]

Does not the life tenanancy end when the person leaves the estate (except for renting the estate)?

[dunes_ny]

Thanks for the great replies.

If you want to sell the house you will have to purchase the life estate whether you like it or not or wait until she dies. Make her a fair counter offer and move on. Figure her normal life expectancy times the fair rental less taxes, insurance and upkeep.

It would be difficult to make her any type of offer because it was against my father's wishes, he was trying to get a divorce before he died so he could give ownership to my sister and I.

We don't believe she will be able to successfully rent the house, because it's in a remote location and if she does we will report her...and then she will enter a much higher tax bracket as a non-resident. What we're hoping is that she won't use the house enough to justify the upkeep, and then give up her life estate.

[lwpat]

She doesn't have to give up the life estate. She can move and then not do anything. Then you will have to spend $$$ going to court. All the while your money is tied up. Forget the emotions and do what is best for your family.

[dunes_ny]

It has nothing to do with emotions, it's all about what my father wanted. I'd rather wait out her death and then will the house to his blood relatives than squander what he worked hard for.

She can move and then not do anything[I]

Not do anything? She has to pay taxes and utilities, as well as pay for work to maintain the house, I would hardly call that nothing. Plenty of incentive to give up her life estate if you ask me.

If anyone can provide a link to florida law which explains the rights and requirements of the life tenant, I would appreciate it. Thanks again.

[lwpat]

Not do anything? She has to pay taxes and utilities, as well as pay for work to maintain the house, I would hardly call that nothing.

These are things she can be required to do by taking her to court. She does not "have" to do them. There are plenty of situations where the person leaves and the property just sits there. Then you have to hire an attorney and get in line at the courthouse.

[BlondiePB]

It has nothing to do with emotions, it's all about what my father wanted. I'd rather wait out her death and then will the house to his blood relatives than squander what he worked hard for.

She can move and then not do anything[I]

Not do anything? She has to pay taxes and utilities, as well as pay for work to maintain the house, I would hardly call that nothing. Plenty of incentive to give up her life estate if you ask me.

If anyone can provide a link to florida law which explains the rights and requirements of the life tenant, I would appreciate it. Thanks again.

Hire a Real Estate attorney in the FL county where this was established. The attorney can review the Life Estate documents, especially when her life tenancy ends, and have the attorney send this widow exactly what are her responsibities, etc. with the consequences of not fulfilling her obligations.