[WSBARP] Life Estate Pur Autre Vie - A Follow-Up Re: Deeding Language

[Eric Nelsen]

I think your client either has to give up on the secrecy, or give up on using a deed with life estate reservation and handle it via a trust or something similar. Privacy and deed recording don't go well together.

I think the proposed language varies from the standard deed format in a way that might cause a problem. I am nervous about the use of "quitclaim and convey" twice in the same deed. It sounds too much like two conveyances, once of which isn't intended to take place immediately, which violates requirements of a valid deed.

I don't think the responsibility for property taxes has this strong an effect on the EP goals here. By law, the holder of a life estate is responsible for property taxes. 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. And as a practical matter, you can get the tax bill sent to whomever you want, by filling out Box 3 of the REET Affidavit.

I would be inclined to stick to the traditional language for a life estate reservation, something like:

"Grantor quitclaims and conveys the real property to Remaindermen, as Tenants-in-Common, reserving unto Grantor a life estate pur autre vie for the full natural life of Grantor's Father."

But that still means you need the remaindermen to sign the REET Affidavit, which obviously alerts them to the transaction.

The desire for secrecy may defeat this method entirely, because you must have delivery of the deed to the Grantees anyway, regardless of whether or not they sign the REET Affidavit.

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: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Wednesday, November 01, 2017 12:17 PM
To: wsbarp
Subject: [WSBARP] Life Estate Pur Autre Vie - A Follow-Up Re: Deeding Language

List,

I wrote a few weeks back about me creating a new life estate pur autre vie and the responses I got both from the list and attorneys in my world were all positive, so I am moving forward with the process of actually drawing up the deeding instrument. Typically, in my experience, the reservation of a life estate takes the form of GRANTOR quitclaims and conveys to GRANTEE (Remainderman) all right and title in the real property but then reserves to him/herself a life estate for the natural life of the GRANTOR. Here, we have some complexities that make that structure a little odd.

Firstly, the Grantor, who would be reserving the life estate to herself but measuring against her father's natural life, will be continuing the payment of property taxes, and dealing with the REET Affidavit means that I need to be able to maintain the existing Grantor as the Grantee for purposes of property taxes.

Secondly, the Remainderman (or, as the case is, the Remainderpersons, who are two persons who will eventually receive title as Tenants-in-Common) do not know about this transfer and all parties want to keep it that way. This is ultimately nothing more than an estate planning tool.

Together, this is leading me to want to deed the property a bit differently than the typical process. My instinct is telling me to write the deeding language like this:

"Grantor quitclaims and conveys the real property to Grantor in the form of and reserving to herself a life estate pur autre vie for the full natural life of Grantor's Father, and then upon the death of Grantor's Father, does quitclaim and conveys in fee simple the real property to Remaindermen, as Tenants-in-Common."

This would appear to accomplish my goals of both ensuring that the taxes are handled exactly as they are currently being handled and would preserve the Remainderpersons from being party to this transaction at all for the time being. Does my deedling language sound sufficient to other people on the list?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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