"The Rogers family gave the National Trust 46 cottages and a couple of farms and now the Rogers Family Trust produces income for the
life tenant."
Moreover, the
life tenant owes a fiduciary duty to the remainderman to maintain the property in good repair and may be liable to the remainderman for the failure to do so and any diminution in value, during his or her lifetime.
The result is that the second wife is a
life tenant who has the right to petition for the partition of her share.
Second, if the property subject to a life estate is sold prior to the
life tenant's death (even after the expiration of the 60-month lookback period), Medicaid will look to receive the net proceeds after those due to the remaindermen based on the IRS actuarial tables of the value of the
life tenant's interest.
The designated party is generally known as the
life tenant and is obligated to maintain the property in good condition and pay all applicable taxes during the term of the life estate.
Q I am a
life tenant in a trust property which is administered by a local firm of solicitors.
This can be achieved by using a life interest trust with a
life tenant who would qualify for the tax break in his own right.
We would advise that any trustee,
life tenant or charitable organisation takes appropriate advice on establishing any manorial rights they hold, together with their value in advance of the changes in the law.
In one case, Ruth represented a widow who was a
life tenant in a condominium.
The four-story, two-family townhouse, is 20 feet wide and 3,200 s/f and is occupied by the grantor, or
life tenant, who keeps possession and use of the property during his/her life.
(19) In this case, a New York court, pointing in part to the exclusive prerogative of several contingent remaindermen to exercise "acts of dominion or ownership," enjoined a
life tenant from demolishing a palatial residence on Manhattan's Upper East Side and erecting in its place an apartment building that promised to increase the market value of the land and inheritance.
The Service ruled that a trust with a
life tenant would be an eligible S shareholder as long as a proper QSST election was filed.