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.
42) However, ordinary use does not permit a life tenant
to do anything that injures the future interest in the property.
In one case, Ruth represented a widow who was a life tenant
in a condominium.
The Life Tenant
is responsible for the property's upkeep and paying any and all utilities.
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.
Private Letter Ruling 8246123 involved a proposed sale by a life tenant
and two remaindermen (both of whom received their interests by gift from the life tenant
) of a home that all three occupied as a principal residence.
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.
In 1950, at the age of 29, he became life tenant
of the "family business" - running the sprawling Arbury Estate, which today employs more than 100 people, including tenant farmers.
A life tenant
, he receives pounds 4million a year income from the Duchy, then pays 40 per cent tax and staff wages, leaving him pounds 1million