[WSBARP] Life estate upon death of grantor

[Rebecca King]

Timothy,

We have done a "House Trust" for these types of situations that outlines everything from who pays the taxes and maintenance on the property while the sister is living there to what constitutes "vacating" the property.  The Trust could be an RLT or a Testamentary Trust in the client's Will.

Warmest regards,
Rebecca King
Attorney

Northwest Elder Law Group
2150 N. 107th Street, Suite 501
Seattle, WA 98133
Main: (206) 937-6102
Direct Line and Fax: (206) 866-6544

Providing Services in Elder Law

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Timothy Lehr
Sent: Wednesday, August 21, 2019 12:30 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Life estate upon death of grantor

All,

Client is widowed and has two children and currently owns property solely in her name. Has a sister living with her on the property. We previously recorded a TODD per her wishes ensuring the property passes equally to the two children outside of probate. Now, she wants to ensure the sister can live on property until she passes or voluntarily decides to leave - even after property transfers to two children.

First idea that I had and we discussed was granting a life estate in favor of sister. My understanding is that at client's death, property would transfer via TODD to the two children and they would take "subject to the life estate". However, client does not want to give sister a present interest of a life estate in case there is a falling out between client and sister and sister exercises right to possession of property during her lifetime.

My question - could client deed property to herself and create a "future" life estate for sister. (I think back to Property class in law school). Draft a deed that gives sister a life estate "at the time of grantor/grantee's death" with a reversionary interest to the two children? Or something to that effect. Her main goal is having property pass to the two children while allowing sister to remain on the property until sister passes away or leaves, but she does not want to give a present interest in property to sister. I may be thinking too far into this.

Thanks,

Timothy C. Lehr
Attorney at Law
Stiles Law Inc., P.S.

p:   360.855.0131
e:   timothy at stileslaw.com<mailto:timothy at stileslaw.com>
w:  www.stileslaw.com<http://www.stileslaw.com>

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