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  1. #1
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    Default What is the Value of a Life Estate

    Quote Quoting simplycleanvk
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    My question involves marriage law for the State of: Illinois
    My father is in the middle of a divorce after 30 years of marriage (he is 77) . He built and owned his home before the marriage. His spouses name was never on the deed.
    A few years ago he had a quit claim deed with a life estate made in which stated that when he passes away that the house will go to his wife and after her passing the house will go to his 4 children.
    She is requesting that she receive 60% of what the house is appraised at. During the marriage she did not contribute anything financially to the property or pay any of the household bills over their 30 year marriage
    . How does this apply since her name is not actually on the deed and she has filed for divorce
    I highly doubt that a life estate could be valued at 60% of the value of the house.

  2. #2
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    Default Re: Real Estate

    Quote Quoting jk
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    regardless, She has a life estate and is entitled to possession of the home until she dies once he dies. Op doesn’t get to just rescind the deed.
    Re the bolded: While I agree that it can't "just be rescinded" it certainly can end up rescinded as part of the divorce. Unless the OP's dad has a really bad lawyer they are not going to end up with a situation where they divorce, he dies 10 years later and THEN she gets to move into the house for the rest of her life.

    I think that she recognizes that as well, since she is asking for a percentage of the value of the house. In my opinion, 60% is way to much value for a life estate.

  3. #3
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    Default Re: Real Estate

    Quote Quoting llworking
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    Re the bolded: While I agree that it can't "just be rescinded" it certainly can end up rescinded as part of the divorce. Unless the OP's dad has a really bad lawyer they are not going to end up with a situation where they divorce, he dies 10 years later and THEN she gets to move into the house for the rest of her life.

    I think that she recognizes that as well, since she is asking for a percentage of the value of the house. In my opinion, 60% is way to much value for a life estate.
    it may be able to be a negotiated rescission but as a stand alone action: not a chance. Since the wife is already given the rights stated in the deed, the court cannot take those away. I think the US constitution has made that clear.

    as to the value; I linked the official Illinois chart for determining value. Take a look and see if the op provides her age (but of course understanding the husband hasn’t died yet so her life estate is not in effect yet and she will be older when it is)

    the value of a life estate for a 70 year old person is 60% of the market value of the property per the Illinois chart

  4. #4
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    Default Re: Real Estate

    Quote Quoting jk
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    it may be able to be a negotiated rescission but as a stand alone action: not a chance. Since the wife is already given the rights stated in the deed, the court cannot take those away. I think the US constitution has made that clear.

    as to the value; I linked the official Illinois chart for determining value. Take a look and see if the op provides her age (but of course understanding the husband hasn’t died yet so her life estate is not in effect yet and she will be older when it is)

    the value of a life estate for a 70 year old person is 60% of the market value of the property per the Illinois chart
    I did look at that, but in my opinion its not logical for a piece of real estate. Let's say that the house is worth 200k now, and will be worth say 230k ten years from now when the person with the life estate dies. Its illogical that the value of living in the house for 10 years is worth 120k...particularly since the person with the life estate has to maintain the home and pay the taxes. Someone wouldn't make that much profit on a rental property in 10 years.

  5. #5
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    Default Re: Real Estate

    Quote Quoting llworking
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    I did look at that, but in my opinion its not logical for a piece of real estate. Let's say that the house is worth 200k now, and will be worth say 230k ten years from now when the person with the life estate dies. Its illogical that the value of living in the house for 10 years is worth 120k...particularly since the person with the life estate has to maintain the home and pay the taxes. Someone wouldn't make that much profit on a rental property in 10 years.
    your logic has nothing to do with it. That is the chart the state uses and that means it is the chart the divorce court will use

    I didn’t ignore the fact the tenant is not taking possession now but not knowing when it would happened (statistically or actually) it’s impossible to guess how itnchanges things.

    What i I was trying to do is show you 60% is not an unrealistic number, depending on all the facts of the wife is younger than the husband

  6. #6
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    Default Re: Real Estate

    Quote Quoting jk
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    your logic has nothing to do with it. That is the chart the state uses and that means it is the chart the divorce court will use

    I didn’t ignore the fact the tenant is not taking possession now but not knowing when it would happened (statistically or actually) it’s impossible to guess how itnchanges things.

    What i I was trying to do is show you 60% is not an unrealistic number, depending on all the facts of the wife is younger than the husband
    Again though, they are divorcing. If she is the same age as her stbx husband or even just a little younger, she might not outlive him and therefore would never live in the home. Or, if she ever lives in the home it might only be for a very short amount of time. Again, I would never agree to 60% in that scenario.

  7. #7
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    Default Re: Real Estate

    Quote Quoting llworking
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    Again though, they are divorcing. If she is the same age as her stbx husband or even just a little younger, she might not outlive him and therefore would never live in the home. Or, if she ever lives in the home it might only be for a very short amount of time. Again, I would never agree to 60% in that scenario.
    So,what if they are divorcing? A deed is forever. That’s why you don’t execute deeds unless you are certain that is the action you wish to take. She now owns a life estate and the court cannot unioaterally without compensation take her asset. Its against the law

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