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<div class=Section1>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>One warning on life estates – if there is Medicaid
involved, now or later, the State may have issues with a transferred remainder
interest. This is not a treatise on the topic, just a notice to proceed
carefully in this area. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Rebecca K. Wiess<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>421 24th Avenue East</span></font></st1:address></st1:Street><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>Seattle</span></font></st1:City><font size=2 color=navy
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:navy'>, <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98112</st1:PostalCode></span></font></st1:place><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Phone 206 329-6638<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>rwiess@foxinternet.net <o:p></o:p></span></font></p>
<div>
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face="Times New Roman"><span style='font-size:12.0pt;font-family:"Times New Roman"'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Craig Gourley<br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, January 22, 2019
10:25 AM<br>
<b><span style='font-weight:bold'>To:</span></b> <st1:PersonName w:st="on">WSBA
Real Property Listserv</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [WSBARP] Transfer of
remainder interest.</span></font><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-family:"Times New Roman"'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=2 color=black
face=Arial><span style='font-size:11.0pt;font-family:Arial;color:black'>Thanks
Dwight, you have confirmed my presumptions. <o:p></o:p></span></font></p>
</div>
<div>
<div>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
11.0pt;font-family:Arial;color:black'>Get <a href="https://aka.ms/ghei36">Outlook
for Android</a><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
11.0pt;font-family:Arial;color:black'><o:p> </o:p></span></font></p>
</div>
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face="Times New Roman"><span style='font-size:12.0pt;font-family:"Times New Roman"'>
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<div id=divRplyFwdMsg>
<p class=MsoNormal><b><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black;font-weight:bold'>From:</span></font></b><font
color=black><span style='color:black'> wsbarp-bounces@lists.wsbarppt.com
<wsbarp-bounces@lists.wsbarppt.com> on behalf of Bickel, Dwight
<Dwight.Bickel@fntg.com><br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, January 22, 2019
10:08:43 AM<br>
<b><span style='font-weight:bold'>To:</span></b> <st1:PersonName w:st="on">WSBA
Real Property Listserv</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [WSBARP] Transfer of
remainder interest.</span></font><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-family:"Times New Roman"'> <o:p></o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'> <o:p></o:p></span></font></p>
</div>
</div>
<div>
<div>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'>We have to start with definitions. The
remainder interest in property is the rights of possession after expiration of
someone else’s life estate. The usual severance is by deed from A, owner of the
fee estate, to A for life then to B. A holds the life estate, and upon
its expiration A has no interest in the land. Upon A’s death, B becomes the fee
owner without limitation. </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'>Your question was the ability to
transfer the remainder estate. In that scenario, the remainder estate is the
rights held by B during the life of A. No possession rights, but a presently
vested right to the full ownership at the death of A. That severed estate in
the title can be conveyed by B to an LLC during A’s life without affecting the
severed estates in any way, neither the life estate or the remainder interest.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'>Of course an LLC cannot hold a life
estate; only a natural person has a life that can be the basis of a life
estate. But an LLC can hold ownership of that severed title to A’s life estate.
It is called a life estate <a
href="https://www.merriam-webster.com/legal/pur%20autre%20vie">pur autre vie</a>.
During A’s life, that existing life estate can be transferred to another
person, or to an LLC, without affecting the life estate or the remainder
interest. The LLC holds the possession during the lifetime of A. Upon A’s
death, that estate is extinguished and B owns the full fee estate.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'>Call if you have any questions. Title
companies are familiar with this and can provide title insurance upon a severed
estate without joinder of the other interest. I provided a mortgage title
policy for $300,000 granted by life estate borrower without joinder. The bank
understood that its mortgage ceased upon the death of its borrower and was relying
upon alternative credit.</span></font><o:p></o:p></p>
<div>
<p class=MsoNormal><font size=2 color=navy face=Verdana><span style='font-size:
11.0pt;font-family:Verdana;color:navy'> </span></font><o:p></o:p></p>
<p class=MsoNormal><b><font size=2 color="#44546a" face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:#44546A;font-weight:bold'>Dwight
A. Bickel</span></font></b><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=gray face=Verdana><span style='font-size:
10.0pt;font-family:Verdana;color:gray'>Regional Counsel</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=gray face=Verdana><span style='font-size:
10.0pt;font-family:Verdana;color:gray'>Fidelity National Title Group</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=2
color=gray face=Verdana><span style='font-size:10.0pt;font-family:Verdana;
color:gray'>701 - 5th Avenue, Suite 2700</span></font></st1:address></st1:Street><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color=gray face=Verdana><span style='font-size:10.0pt;font-family:Verdana;
color:gray'>Seattle</span></font></st1:City><font size=2 color=gray
face=Verdana><span style='font-size:10.0pt;font-family:Verdana;color:gray'>, <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98104</st1:PostalCode></span></font></st1:place><br>
<font size=2 color=gray face=Verdana><span style='font-size:10.0pt;font-family:
Verdana;color:gray'>Phone: (206) 370-3189</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=gray face=Verdana><span style='font-size:
10.0pt;font-family:Verdana;color:gray'>E-mail: </span></font><font
color="#1f497d"><span style='color:#1F497D'><a
href="mailto:Dwight.Bickel@fntg.com"><font size=2 color=gray face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:gray'>Dwight.Bickel@fntg.com</span></font></a></span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;color:#1F497D'> </span></font><o:p></o:p></p>
<div>
<div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal style='margin-bottom:12.0pt'><b><font size=2 face=Calibri><span
style='font-size:11.0pt;font-weight:bold'>Behalf Of </span></font></b>Craig
Gourley<o:p></o:p></p>
</div>
</div>
<div>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>Listmates,
During the holidays I posted a query but don’t recall any responses, or maybe I
just don’t recall them! Client wants to transfer their remainder interest
in a life estate to an LLC. I can’t think of a reason why not but have never
done it before. Anyone think of a reason why this cannot or should not be
done? Thanks!! Craig <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'> <o:p></o:p></span></font></p>
</div>
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</span></font></div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt;font-family:"Times New Roman"'>NOTICE: The information contained in this
message is proprietary and/or confidential and may be privileged. If you are
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