Life Tenant and Remaindermen Want to Sell and Split Proceeds

[johnstth]

My question involves property situated in Texas, which was devised by a Texas will to interested parties residing in Missouri and Illinois.

The testator died a few years ago. The testator created a life estate in a piece of property in his son. His two grandsons are remaindermen. The property has no buildings, no real income value. The taxes on the property, however are somewhat significant. None live near the property.

The will does not provide who is to pay the taxes on the property, and all 3 have been paying the taxes (and other costs) equally. The will provides: "(son) may not sell or take a loan out on the property without written permission of (grandsons)".

It is the desire of the life tenant (son) and 2 remaindermen (grandsons) to sell the property and split the proceeds three ways between them. Is this something that can be done? Are they going to need to get an attorney in TX to assist them in drafting an instrument to allow for this?

Thanks!

[Mr. Knowitall]

If the life tenant and remaindermen all want to sell the property and divide the proceeds, they can do just that. If they sell the property, somebody is going to have to prepare a deed. Who? That's going to depend upon how the sale is conducted. Somebody's lawyer, somebody's title company, somebody else....

[johnstth]

Thanks for the quick reply. I was concerned that a court would not want to allow the son and grandsons to split the proceeds, as it would frustrate the intent of the testator in creating a life estate and remainder interests. If that is something courts are willing to do, then great. I would imagine that some sort of petition would need to be filed to allow the sale, however, correct?

Also, it seems there may be tax implications to this particular plan of theirs.... I fear that if they sell and split the property they will pay another round of taxes. Any thoughts?

Thanks again for any of your impressions, the help offered on these boards is a useful place to get started.

[lwpat]

They can agree on how to split the proceeds. The court has no say. They will have to pay tax on the profit just like anyone else. An accountant can tell them the basis.