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<p class="MsoNormal"><span style="color:#1F497D">Having recently encountered some issues with this kind of arrangement--that is, giving someone a right to occupy property after death of the grantor, with residue going to someone else--I have compiled a list
of issues/provisions to think about in structuring the arrangement. I think a trust, whether RLT or testamentary, is the safest way to go, because there are a lot of potential and unforeseeable problems that can arise and somebody (the trustee and/or the residue
heir) needs some flexibility and discretionary authority to deal with them. There is background law that addresses almost all these issues, but better to have express terms in a trust so there is no argument.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">My rough notes to myself:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> gift is only a right to occupy and is conditioned on fulfilment of all conditions herein. right to occupy is not assignable and may not be shared except for casual overnight visiting guests.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> gift includes right to occupy without payment of rent during pendency of probate, but during pendency of probate the beneficiary must cooperate in allowing access to the property to the full extent
the PR finds it necessary or convenient, at any time, upon 12 hours' oral or written notice or no notice in case of emergency.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> gift is not a life estate. the gift is intended solely as an accommodation to X to allow her/him to live at the property. my intent is for all value of the real property to pass to my residue
heir subject only to this limited right to occupy which has no market value, for the full value of the property to be preserved for the residue heir, at occupant's expense during occupancy, and without any financial burden on my estate or residue heir during
occupancy.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> right to occupy is not exclusive as against the estate (not residue heir) retains rights to enter and inspect to the same extent as a tenant-in-common, and estate may store tangible personal property
that belonged to decedent at time of death until probate is closed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> right to occupy belongs to X only and may not be extended to any overnight guests for longer than seven (7) days out of any six (6) week period; provided, X may have a paid in-home licensed and
certified caregiver<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> occupancy defined as: actually occupying the home on an overnight basis for at least five weeks out of every ten weeks [except winter snowbird? except up to 90 days if hospitalized or in convalescent
care?].<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> estate has a right to maintain exterior surveillance cameras and other equipment to keep house secure and monitored.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> must pay for reasonable maintenance and repair.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> must pay all property taxes when due.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> must pay all utilities when due.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> must pay for and maintain homeowner insurance for full replacement value of the house, naming residue heir as insured; shall cover for fire, and flooding if necessary, but not responsible for
earthquake coverage; shall include inflation rider to maintain full coverage; occupant to select the company with residue heir's approval, which approval shall not be unreasonably withheld.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> residue heir has right to direct access to and communication with insurer<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> must pay mortgage?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> if estate has insufficient other assets to pay all costs of administration and lawful claims against the estate, then estate may sell the house and substitute a gift to occupant calculated as
$X per year by actuarial table of occupant's life.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> residue heir to have right to routinely inspect the property no more often than semi-annually upon 48' hrs notice to occupant, and additional right to enter at any time without notice in emergency
to preserve property value<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> residue heir right to receive annual accounting relating to payments, maintenance and repair<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> notice of default and opportunity to cure, residue heir to have right to issue<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> residue heir to have right to use unlawful detainer procedure for failure to meet requirements, award of atty fees to prevailing party<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Rebecca King<br>
<b>Sent:</b> Wednesday, August 21, 2019 12:59 PM<br>
<b>To:</b> WSBA Real Property Listserv<br>
<b>Subject:</b> Re: [WSBARP] Life estate upon death of grantor<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Timothy,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal" style="text-autospace:none">Warmest regards,<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:14.0pt;font-family:"Script MT Bold";color:black">Rebecca King</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Book Antiqua","serif";color:black">Attorney</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Book Antiqua","serif";color:black"> </span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><b><span style="color:black">Northwest Elder Law Group</span></b><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="color:black">2150 N. 107<sup>th</sup> Street, Suite 501</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="color:black">Seattle, WA 98133</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="color:black">Main: (206) 937-6102</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="color:black">Direct Line and Fax: (206) 866-6544</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><i><span style="font-family:"Book Antiqua","serif";color:black">Providing Services in Elder Law<o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Book Antiqua","serif";color:black">CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged
information protected by law. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal"><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"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Timothy Lehr<br>
<b>Sent:</b> Wednesday, August 21, 2019 12:30 PM<br>
<b>To:</b> 'WSBA Real Property Listserv' <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Life estate upon death of grantor<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Timothy C. Lehr<o:p></o:p></b></p>
<p class="MsoNormal">Attorney at Law<o:p></o:p></p>
<p class="MsoNormal">Stiles Law Inc., P.S.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">p: 360.855.0131<o:p></o:p></p>
<p class="MsoNormal">e: <a href="mailto:timothy@stileslaw.com">timothy@stileslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">w: <a href="http://www.stileslaw.com">www.stileslaw.com</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>NOTICE</b>: The information contained in this email 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 email and all copies;
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