QUESTION
Can a Life Estate be repeatedly re-created after selling the previous Life Estate house?
Asked on Nov 12th, 2013 on Trusts and Estates - New Jersey
More details to this question:
Our grandmother died 1987. Her Will permitted her house (#1) to be sold on provision that a Life Estate be created for our Aunt, as follows: "...the aforesaid real property may be sold and the proceeds thereof used to purchase another residence... with the provision that my daughter would have a life estate in the new residence" So, house #1 was sold and #2 bought w/ the Deed creating a Life Estate w/ the trust as remainderman. In 1997, house #2 was sold and another (#3) bought using the proceeds from #2 (after being placed back into the trust). The Deed transferring ownership of #2 says, "(LT), one of the grantors herein, herby relinquishes the Life Estate created by Deed, dated...1987". The Deed for #3, nevertheless, shows a new Life Estate created. The Will contains no provision to repeatedly sell, without limit, the Life Estate house, buy another one and create a new Life Estate over and over. Did not the Life Estate terminate when #2 was sold? Was #3 a legitimate Life Estate?
1 ANSWER
2 Awards
I life estate is measured by the life of the person in whom it is vested. If life estate is created, and a provision made in a will that the underlying property could be sold on the provision that a life estate in that property be re-created for your Aunt, then yes, I believe that could be re-created in each new property. Your aunt would have to continue to live int he properties, and should not be directing the purchase or sale of the property. In addition, depending on the provisions in the will, she may be responsible for upkeep, taxes, utilities,etc on each property.
Answered on Nov 13th, 2013 at 3:39 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship