[WSBAPT] Life Estate Question

[Eric Nelsen]

Two alternative arguments:

Girlfriend got a life estate subject to conditions, children got remainder interest. Therefore they are ALL devisees of the real property, with the fee estate divided between them. The encumbrance should be paid in some portion by all of them. That could be calculated by using an actuarial life expectancy table for the girlfriend, valuing her life estate with an appraiser based on that expected term of use, and use that value as a percentage of the market value of the property to establish the girlfriend's percentage liability on the encumbrance. If she is young enough and the rental value is high enough, her percentage might end up being 100%.

Girlfriend got a tenancy only, if the complete language was not sufficient to establish an actual life estate. In that case, the kids are the devisees, and they should pay the entire encumbrance.

Based on the language quoted, I think you could argue either way. The phrase "life estate" apparently was not used in the Will.

I would urge them to come to a simple agreement quickly.

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

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Scott Kee
Sent: Tuesday, October 17, 2017 12:15 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Life Estate Question

In his will, the decedent left property to his kids, but reserved a life estate his girlfriend.  The specific language is . . ."Girlfriend is entitled to reside in the real property located at  . . . . provided she pays the taxes and insurance on the property.  The residue of the estate goes to kids.

There is an underlying mortgage on the property and the decedent made no provision for, and did not mention, the mortgage.  In addition, maintenance has become an issue.

Girlfriend is taking the position that she is not responsible for the mortgage or maintenance as the decedent did not expressly indicate as much(see In Re Estate of Campbell) and she is not the ultimate beneficiary.

Kids are taking the position that Girlfriend is the devisee(see RCW 11.12.70) and therefore she is responsible for mortgage and maintenance.

Thoughts?

C. Scott Kee
Rodgers Kee & Card, P.S.
324 West Bay Drive, Suite 201
Olympia, WA 98502
(360) 352-8311
scottkee at buddbaylaw.com<mailto:scottkee at buddbaylaw.com>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20171017/cd95733d/attachment.html>