[WSBAPT] Life Estate Question

[Kate Szurek]

We litigated the issue years ago, in Skagit County.  At that time, there was no case law in Washington.  But there was settled law in other jurisdictions and, as I recall, the restatement was helpful.  Basically, unless the decedent specified otherwise, because the life tenant is entitled to any income the asset might generate, s/he is also responsible for the cost of carrying the debt (i.e., the interest portion of the mortgage), and because the remainder beneficiaries receive the full asset at the end of the life estate, they are responsible for protecting the principal portion of the debt.

The judge who heard our argument told us we should mediate the dispute.  We did, and that was the agreement that was reached.

Kate

Kate Szurek, J.D., LL.M.
kate at skagitlaw.com<mailto:kate at skagitlaw.com>

[SkagitLaw_Signature (2)]
Skagit Law Group, PLLC
P.O. Box 336 / 227 Freeway Drive, Suite B
Mount Vernon, WA  98273
360.336.1000
360.336.6690 (fax)
http://www.skagitlaw.com<http://www.skagitlaw.com/>



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>

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