Q: She was diagnosed with dementia and was put in a nursing home. She will never leave this facility. She has some sort of lifetime estate in the deed. (Braddock Hills, PA)
A: It depends on the wording of the life estate. Many life estates are worded, “until death or unable to return home”. I would have the agreement reviewed by an attorney first. Obviously, if the life estate has been fulfilled, and it is clear she cannot return to the home, you can sell the home. Remember, there are inheritance tax consequences of her life estate, in that the life estate itself is subject to inheritance tax.