What is life estate remainder interest?
What is life estate remainder interest?
The remainderman is the person who inherits property after the termination of a life estate. For trust accounts, the remainderman receives the remaining principal after the estate has been distributed. A remainder interest is a future interest a person has in an asset.
What are the different types of interest in a life estate?
When property is transferred by Life Estate Deed, ownership is divided into two types of interest: life estate and remainder interest. The owners who hold these two types of interest are truly owners of the property, but they have different rights of possession.
Who are the children of a life estate?
Mom has two adult children, Adam and Beth. Mom visits an attorney, who assists her in executing a life estate deed. The legal effect is such that Mom keeps a life estate interest in the home (the right to use and occupy the home during her lifetime).
What happens to the remainder of a life estate?
But when the life tenant dies, the remainder interest in the property goes to the beneficiary, also known as the remainderman. Often a parent might create a life estate in order to give their house to their child but retain control over it during the parent’s lifetime.
Who is the holder of a life estate?
The legal effect is such that Mom keeps a life estate interest in the home (the right to use and occupy the home during her lifetime). Mom is called the “life estate holder.”
When does life interest extinguish in a will?
However, in other cases, the ‘life estate’ or ‘life interest’ extinguishes upon the death of the Widow since the Will only prescribed a restricted estate. There remains ambiguity on this subject and divergent views have appeared in different decisions of the Supreme Court as well as High Courts across the country.
Mom has two adult children, Adam and Beth. Mom visits an attorney, who assists her in executing a life estate deed. The legal effect is such that Mom keeps a life estate interest in the home (the right to use and occupy the home during her lifetime).
How is a life estate for a surviving spouse divided?
Life Estate for Surviving Spouse. It may be that, if the residence is sold, the proceeds are divided amongst the surviving spouse and the children. It might also be that, if the surviving spouse remarries or move out of the residence, the surviving spouse loses all beneficial interests in the residence and the children receive their inheritances.
Can a wife have a ” life interest ” in assets?
It is to be noted that the effect of such a bequest shall be that your wife shall only have a “life interest” in your assets bequeathed under your will, which means that your wife will not be entitled to deal with (sell or part with) any of the assets, whether it be financial instruments or immovable property during her lifetime.