What is the common acquisition date for a life estate?
As explained in the regulations, under the laws governing transfers from decedents, all ownership interests relate to the death of the decedent, whether the interests are vested or contingent. That means that there is a common acquisition date and a common basis for life tenants and remainder holders.
What happens to the property in a life estate?
The deed includes a provision stating that the parents “retain the right to use and occupy the property during their lifetimes,” a so-called “life estate” in the property. Upon the death of the parents, the life estate ceases to exist and the children own the property free and clear of any lien for long-term care costs.
Can a life estate be used to transfer farmland?
Life estates are popular for farmland transfers as a life estate is property that an individual owns for their lifetime. They prevent the beneficiary from selling the property that produces income before their death, but these covenants can’t extend beyond that beneficiary’s death.
How is the basis of a life estate determined?
It is that fair market value that determines the basis of the property in the hands of the recipient of the property. That’s fairly simple to understand when the decedent owns the entire property interest at death. However, that’s not the case with property that is held under a life estate/remainder arrangement.
As explained in the regulations, under the laws governing transfers from decedents, all ownership interests relate to the death of the decedent, whether the interests are vested or contingent. That means that there is a common acquisition date and a common basis for life tenants and remainder holders.
Is there any claim on my late mothers estate?
She passed away six weeks after going into hospital but he stayed there for another nine weeks. He left a few days ago and stated he was to make a claim on the estate. Apparently because I’d left him a note telling him politely to stop leaving on the TV, lights and the oven. Does he have any legal claim on my late mothers estate?
How did my mother’s partner split her estate?
My mother passed away leaving her estate divided equally between myself and my brother. Her live-in partner of some 30 years, who paid her rent of £100 per week that was just given to her each Friday and not recorded in any book, stopped paying when she went into hospital but carried on residing at her home for 15 weeks.
The deed includes a provision stating that the parents “retain the right to use and occupy the property during their lifetimes,” a so-called “life estate” in the property. Upon the death of the parents, the life estate ceases to exist and the children own the property free and clear of any lien for long-term care costs.