Should You Establish Co-Ownership Rights Through a Life Estate or Life Lease

[Weezie66]

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

My Mother and I co-own the home and property she currently resides in. I own the property and half interest of the structures on the property. All land and structures are legally in my name. She lives there rent free except she pays the annual property taxes and Insurance (my name is also on the insurance) on the home.

She wants to be reassured in the form of a legal contract of some sort that she can continue to live in the home until her death or she can no longer care for herself.

What can I do to satisfy her wants but still be in control of my ownership?

[flyingron]

It sounds like a life estate may be what she is looking for. Essentially she has rights to the property while she is a live but also the responsibility for taxes and upkeep. When she dies all rights revert ot the remainderman (you). However, there are additional issues in doing this and since despite what you say you are currently the SOLE owner, you should consult an attorney. You'll need one to draft the life estate deed anyhow.

[Taxing Matters]

What can I do to satisfy her wants but still be in control of my ownership?

It’s not clear what the situation is since you start out saying that you and your mother co-own the home and property, but then end up saying that all the land and structures are “legally in [your] name”. Well, which is it?

If she is a co-owner then she has the right to stay there as long as she wants and to do with her share of the property what she wants, including selling it, giving it to whomever she wants, etc. What happens at her death would depend on whether you own it as tenants in common or as joint tenants with a right of survivorship.

On the other hand, if you are the sole owner of the property then she is merely a tenant on the property. Setting up a life estate in that instance would not benefit you; a long term lease arrangement would be better for you in that instance.