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  1. #1
    Join Date
    Feb 2008
    Posts
    578

    Default Re: Life Estate And In Law Issues

    Unless the dwelling is a legal two-family house(duplex, etc), the life estate extends to the entire property. In a legal duplex you could grant a life estate to the one property. The key here is that there would be a deed for each property. A life estate is a deeded interest(it is essentially a right of property use until death) and cannot be "taken back" except with their consent or a breach of certain terms in the deed(usually life estates cannot be encumbered/mortgaged by the person holding them and often there are provisions for paying utilities, maintenance, ownership costs, etc). They would need to give up their right(possibly by quit-claim deed? or other conveyance) prior to you being able to sell it. They may negotiate with you terms for doing so, such as finding them a new place, etc. You all just have to agree. Often, life estates are granted with clauses that state the person(s) actually use/inhabit the property(often they do not have to be occupied full time such as with older snowbirds) - abandonment can terminate the estate.

    Talk to a lawyer about getting a good agreement written that protects the interests of both parties.

  2. #2

    Default Re: Life Estate And In Law Issues

    A life estate is inviting the possibility of a huge problem. There are other ways that will not prevent you from selling in the future. A living trust may be the best option.

  3. #3
    Join Date
    Mar 2008
    Posts
    2

    Default Re: Life Estate And In Law Issues

    I wanted to clarify - the house belongs to me, I pay the bills and am currently getting the deed transferred to my name. It is one house with an apartment atteached to the house. Someone suggested to my inlaws that they get a life estate agreement before transferring the deed and I think this will cause problems.

  4. #4

    Default Re: Life Estate And In Law Issues

    As usual, the rest of the story. This can effect any government assistance they may receive now or in the future and there are tax consequences.

    This is not something to do without the advice of an attorney. If you do decide on a lfe estate it needs to be specific and include items such as maintenance, taxes, insurance, what happens if they move, etc.

    A long term renewable lease may be a better option but again have an attorney draw it up.

    The house does not belong to you.

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