<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=Windows-1252">
<meta content="text/html; charset=Windows-1252">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style>
<!--
@font-face
{font-family:"Cambria Math"}
@font-face
{font-family:Calibri}
@font-face
{font-family:Verdana}
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif}
a:link, span.MsoHyperlink
{color:#0563C1;
text-decoration:underline}
a:visited, span.MsoHyperlinkFollowed
{color:#954F72;
text-decoration:underline}
span.EmailStyle17
{font-family:"Calibri",sans-serif}
span.EmailStyle18
{font-family:"Calibri",sans-serif;
color:#1F497D}
.MsoChpDefault
{font-size:10.0pt}
@page WordSection1
{margin:1.0in 1.0in 1.0in 1.0in}
div.WordSection1
{}
-->
</style>
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72">
<div dir="auto" style="direction:ltr; margin:0; padding:0; font-family:sans-serif; font-size:11pt; color:black">
Thanks Dwight, you have confirmed my presumptions. <br>
<br>
</div>
<div dir="auto" style="direction:ltr; margin:0; padding:0; font-family:sans-serif; font-size:11pt; color:black">
<div dir="auto" style="direction:ltr; margin:0; padding:0; font-family:sans-serif; font-size:11pt; color:black">
Get <a href="https://aka.ms/ghei36">Outlook for Android</a></div>
<br>
</div>
<hr tabindex="-1" style="display:inline-block; width:98%">
<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" color="#000000" style="font-size:11pt"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Bickel, Dwight <Dwight.Bickel@fntg.com><br>
<b>Sent:</b> Tuesday, January 22, 2019 10:08:43 AM<br>
<b>To:</b> WSBA Real Property Listserv<br>
<b>Subject:</b> Re: [WSBARP] Transfer of remainder interest.</font>
<div> </div>
</div>
<div>
<div class="WordSection1">
<p class="MsoNormal"><span style="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></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="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></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="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></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="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></p>
<div>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif; color:navy"> </span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:#44546A">Dwight A. Bickel</span></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">Regional Counsel</span></p>
<p class="MsoNormal"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">Fidelity National Title Group</span></p>
<p class="MsoNormal"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">701 - 5th Avenue, Suite 2700</span></p>
<p class="MsoNormal"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">Seattle, WA 98104<br>
Phone: (206) 370-3189</span><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:navy"></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">E-mail:
</span><span style="color:#1F497D"><a href="mailto:Dwight.Bickel@fntg.com"><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray">Dwight.Bickel@fntg.com</span></a></span><span style="font-size:10.0pt; font-family:"Verdana",sans-serif; color:gray"></span></p>
</div>
<p class="MsoNormal"><span style="color:#1F497D"> </span></p>
<div>
<div style="border:none; border-top:solid #E1E1E1 1.0pt; padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>Behalf Of </b>Craig Gourley<br>
<br>
</p>
</div>
</div>
<div>
<p class="MsoNormal">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
</p>
<p class="MsoNormal"> </p>
</div>
</div>
<hr style="height:1px; border:none; color:#000; background-color:#000">
NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. If you are not the intended recipient of this communication, you are hereby notified to: (i) delete the message and all copies; (ii) do not disclose,
distribute or use the message in any manner; and (iii) notify the sender immediately.
</div>
</body>
</html>