Tag Archives: LIFE ESTATE

Can my mother and I sell her home and dissolve the life estate?

My mother is 89 years old and developed mild dementia and heart disease. The doctor does not want her to live by herself, so she has moved in with me. We set the life estate up about 5 years ago after a lawyer assured us it was the right thing to do. I am the only surviving child and do not plan to put mom in a nursing home and will use hospice if needed in the future. I do not want to rent the property because it is about 100 miles from me and would be more trouble than it is worth. Can I sell the property since I am providing my mother with a place to live and am also her caregiver? (Baldwin Borough, PA)

A: I would need to know is the life estate in the deed or a trust and look at the documents. If in a deed, does the life estate terminate upon conditions of her death or her being unable to live in the home independently? If in a trust, the trust will have similar conditions which constitute the ending of the life estate. Who does ownership pass to when the life estate conditions have been fulfilled? If one of the conditions of the life estate terminating is her being unable to live in the home independently, then that condition has been fulfilled and you should be okay. However, you should review the paperwork with attorney for a more definitive answer.

Can my mother and I sell her home and dissolve the life estate?

Q: My mother is 89 years old and developed mild dementia and heart disease. The doctor does not want her to live by herself, so she has moved in with me. We set the life estate up about 5 years ago after a lawyer assured us it was the right thing to do. I am the only surviving child and do not plan to put mom in a nursing home and will use hospice if needed in the future. I do not want to rent the property because it is about 100 miles from me and would be more trouble than it is worth. Can I sell the property since I am providing my mother with a place to live and am also her caregiver? (Baldwin Borough, PA)

A: I would need to know is the life estate in the deed or a trust and look at the documents. If in a deed, does the life estate terminate upon conditions of her death or her being unable to live in the home independently? If in a trust, the trust will have similar conditions which constitute the ending of the life estate. Who does ownership pass to when the life estate conditions have been fulfilled? If one of the conditions of the life estate terminating is her being unable to live in the home independently, then that condition has been fulfilled and you should be okay. However, you should review the paperwork with attorney for a more definitive answer.

If parents in nursing home on Medicaid who is responsible for home upkeep?

Q: My parents put their home and property in a life estate with my sister, my deceased sister’s son and myself. They have since been confined to a nursing home and on Medicaid. (life estate set up 10 years prior to Medicaid so the 5- year look-back is not an issue) My main question is who is responsible for the maintenance, upkeep and financial obligations of the property? My sister and I have been keeping it up, but the nephew has refused to do anything. (Baldwin, PA)

A: I would need to review the life estate before advising you adequately. Is the life estate in their will or in a deed? If the life estate is in a deed that was filed 10 years prior to Medicaid eligibility, the only part of the transaction you need to be concerned with would be the value of the life estate. If your parents held a life estate, they had the right to live in the home that you now own, until the conditions which terminate the life estate are fulfilled. Their life estate has value. Maintenance issues would generally fall upon the owners unless the nephew tenant was obligated to do maintenance pursuant to a lease. Again, you need to have the documents reviewed to get a more thorough answer.

Can my brother and I sell the house where my mom has lifetime rights?

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.

Can my aunt contest my grandmother’s life estate?

Q: I have lived with my grandmother for over 18 years now and raised both of my children here with her. When her children found out she left the house to me as a life estate they stopped talking to her. She pays all the bills in turn I take care of her and promised to never leave her and to never allow her to be put in a home. She wants to die in her own house. My family and I care for her every day. We do breakfast, lunch dinner, medicine, showers, changing her diapers, anything and everything that she needs. We are the only ones here to help. They want nothing to do with her and only contact her by phone occasionally. They send her cards in the mail and they live 2 miles away. Sometimes one of her other granddaughters will come here just to take her to the bank to get money. They want to wait until she passes because they know while she’s alive she will fight for me and what she wants for us. But she is 97 and shouldn’t have to go through this. It stresses her out thinking they are going to try to take away the home we have built. is there anything we can do to ease her mind and make sure that these people cannot hurt us anymore? (Penn Hills, PA)

A: It is difficult to tell who has the life estate, you or your grandmother. I strongly suggest that you and your grandmother meet with an elder lawyer or estate lawyer who can look at this deed and advise you as to what your options are. If she has the life estate, the normally will house transfer to someone upon her death, hopefully you. If you have the life estate you can live there until you die, then the house transfers to someone else.

What can I do with my Mother’s home? She is 93 and currently resides in the house.

Q: She has a trust and I am the only beneficiary. She has a life estate that was signed over 5 years ago. She has nursing home insurance but they say she is not currently eligible to receive benefits. We live in Oregon and I am disabled. The cold weather contributes to my pain levels and I want to move to Florida. The house is 64 years old and my husband age 79 has done many repairs and major remodeling to keep the place intact and from deterioting in value.
We would move her to Florida if necessary. The local relatives either work out of town or they are not well and able to help. I wonder if we can sell the house or would we need to rent it out until she passes away? She has some assets in addition to the house but no other real estate. 

A: You really should consult with a lawyer. The life estate would need to be reviewed to determine what conditions allow mother to vacate the lease. Trust needs to be examined as well to verify if and when any transfer was made. These need to be known especially if there is any potential that your mother may need to apply for Medicaid funding in the future. If there is any chance that Medicaid will be involved and this house may be subject to a Medicaid lien, you will want to sell the house only at fair market value and nothing less and document the transaction as well as how all the proceeds are spent on your mother’s care. However, review this with an attorney before you do anything. You may also want to consult with a Florida attorney regarding Medicaid.

 

I have a life estate but don’t know what it means

Q; I was left a to life estate in my mom’s will.  My sister is executor of mom’s will and is telling me she inherits mom’s home and her real property. I was left a life estate but don’t know exactly what that means. What are my rights in PA? With life estate can my sister sell the property with me having a life estate? Or, does she have to buy me out? She is complaining about my cats and meddling in my life.

A: I cannot provide exact advice without looking at the estate papers and the deeds. Normally, a life estate permits you to live in the home until you move or die. Normally, a life estate does not convey any ownership to the person who has the life estate. Generally, ownership passes to a remainder person once the person with the life estate dies or vacates the property. It is possible that the life estate just gives you the right to live there, but does not convey ownership to you. Again, these documents should be looked at. I would consult with an estate attorney in your area who can look at the documents.