Life Estates

By
Real Estate Agent with Coastal Properties Group International

Inheritances can often lead to nasty family disputes. Many times a person will remarry late in life - which leads to who will inherit the family home. Often this is solved by leaving the second spouse a "Life Estate". This means that the spouse can continue living in the home as long as possible, until death. At that point, the "remaindermen" take title and thus inherit the property.

It's difficult to sell a life estate, because the term depends on the life of the person first granted the life estate. Neither is the remainder easy to sell, since the purchaser would not be able to take posession until the life estate holder dies.

Be sure you, your title company or your attorney checks thoroughly to see if a property is subject to a life estate. 

Posted by

Sharon Simms
CIPS CRS CLHMS CRB RSPS
Coastal Properties Group
CHRISTIE'S International Real Estate
238 Beach Drive NE
St Petersburg, FL 33701
www.ssimms.com    www.coastalpgi.com   www.christiesrealestate.com
(727) 898-2582    Sharon@SimmsTeam.com

 

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Rainmaker
605,200
Sharon Simms
St. Pete FL - CRS CIPS CLHMS RSPS
Coastal Properties Group International
Kevin - I hadn't thought of relating them to reverse mortgages. Guess the ones I've dealt with were from before reverse mortgages became popular.
March 04, 2008 06:30 AM
Rainmaker
617,417
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.
I have not had a life estate come up yet.  It is something that has been covered extensively in our classes, so hopefully I am prepared for it.
March 05, 2008 11:54 PM
Rainer
130,247
Billnulls Blog Florida Realty Professional
AHWD
Charles Rutenberg Realty

Sharon - I have never had to deal with this one (yet) but thanks for making me aware of it!!!

March 06, 2008 06:26 PM
Rainer
153,983
Sasha Miletic - Windsor Real Estate
RE/MAX Preferred Realty Ltd.

Hi Sharon,  What  a great  post.  Luckily I  haven't dealt with it  yet but THANKS for the heads up and great article.  I'll be researching it a little  more thoroughly.  Best, - Sash

March 07, 2008 11:22 AM
Rainmaker
605,200
Sharon Simms
St. Pete FL - CRS CIPS CLHMS RSPS
Coastal Properties Group International

Randy - I'm sure you're prepared for whatever comes your way.

Barbara Jo - usually the property doesn't go up for sale while the life estate is in effect, so it's unlikely to be an issue. Once the life estate holder has moved out, it's fine for the remainderman to sell the property as a normal fee simple.

Sasha - thanks. Forewarned is forearmed. 

March 07, 2008 06:13 PM
Anonymous
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Rainmaker
605,200

Sharon Simms

St. Pete FL - CRS CIPS CLHMS RSPS
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