[WSBAPT] Life Estate v True Owner

Thu Sep 8 14:33:23 PDT 2016

No statute--it's common law. Daughter is actually a remainderman with no possessory interest, if mom has a genuine life estate. Daughter has virtually no actual authority over the property; just a potential to sue mom for the tort of waste, if mom lets the property deteriorate drastically. Feel free to call me if you want to discuss further.

Here is the section from WSBA Real Property Deskbook Vol. 3, Ch. 1.3(1) (4th ed., 2015 update):

(1)  Life estates

  Future Interests—Reversion (in Grantor)
  Remainder (in Third Party)
  Vested Completely
  Subject to Open
  Subject to Complete Defeasance (Executory Interests)
  Contingent
  "O to A for life"
  "O to A for life, then…"

This is the shortest freehold estate and, as its title indicates, it is a freehold estate for the grantee's (or someone else's) life only. The most common usage to create a life estate is "to A for her life." More often than not, a simple conveyance "to A for life" will create a life estate measured by A's life rather than that of the grantor.

The presumption of English law was that if words of inheritance were not used, the conveyance was of a life estate only. The need to use "and her heirs," or like language, was eliminated by statute. RCW 64.04.060. Continued use of that language may create problems. See §1.4(7).

A life estate terminates with the death of the life tenant (or the death of the measuring life). Parr v. Davison, 146 Wash. 354, 262 P. 959 (1928). In relationships with neighboring landowners (e.g., nuisance, support), the life estate has the same characteristics as the fee simple absolute. The life tenant has the right to undisturbed possession. A life tenant who commits waste may be subject to a suit for damages or an injunction on behalf of the remainderman. By statute in Washington, the life tenant committing waste is liable for damages to "any person injured thereby"; in addition, the court may decree a forfeiture. RCW 64.12.020; see McDowell v. Beckham, 72 Wash. 224, 130 P. 350 (1913). See also Volume 4, Chapter 5 (Waste), of this deskbook.

Both the life tenant and the remainderman may recover for damages inflicted by third persons against the land. The life tenant, like the fee owner, has the privilege of taking issues and profits of the land, but only, of course, during the period of his or her tenancy. A life estate is transferable inter vivos, but again the life tenant can transfer only what he or she has. A holder of a life estate pur autre vie (for the life of another) can transfer the estate at his or her death, but only for the duration of the measuring life.

The life tenant is bound to keep the premises in repair and to pay taxes but is under no obligation to make improvements. In re Brooks' Estate, 44 Wn.2d 96, 265 P.2d 833 (1954); McDowell v. Beckham, 72 Wash. 224. The life tenant who makes improvements acts voluntarily and has no claim against the reversioner or remainderman for reimbursement. In re Brooks' Estate, 44 Wn.2d 96; Stahl v. Schwarz, 81 Wash. 293, 142 P. 651 (1914).

Generally speaking, the life tenant is required to pay real estate taxes on the property during the life estate. The grantor may, however, require that payments be made by the holder of the future interest, but probably may not do so if the value of the future interest will not secure the payments. In re Estate of Campbell, 87 Wn. App. 506, 942 P.2d 1008 (1997). A life estate is subject to claims of the life tenant's creditors, but that liability, again, ceases with the termination of the life estate, i.e., the death of the life tenant (or the measuring life).

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Christie Martin
Sent: Thursday, September 08, 2016 1:43 PM
To: RPPT listserv
Subject: [WSBAPT] Life Estate v True Owner

Can someone direct me to statutory provision that may list what rights a life estate resident has regarding her rights as opposed to the registered owner?  PC is mom living in home deeded to daughter but left a life estate in property.  Daughter now coming in saying who can come and go, etc…

Thanks!

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Christie L. Martin | Martin & Richards, LLP
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