![]() ![]() Unless prohibited by the will, trust, or deed, the life tenant may rent out or make improvements on the property.Ī remainderman may file a lawsuit against the life tenant if the latter takes any action that diminishes the value of the property or encumbers or attempts to sell the property. Without the consent of the remainderman, the life tenant may not take out a new mortgage or otherwise encumber the property. The life tenant must maintain the property, make any existing mortgage payments, pay property taxes, and keep the property adequately insured. The only responsibilities a remainderman has are really to himself-namely, protecting his rights in the property and preserving those rights for his heirs.Ī remainderman has an interest in assuring that the life tenant does not destroy, damage, or otherwise diminish the value of the property. Rights of a remaindermanĪlthough a remainderman has certain rights that need to be protected, he does not have any responsibilities that are owed to the life tenant. In the event of the death of a remainderman before the life tenant dies, the remainderman's interest may pass to the deceased remainderman's estate or possibly to the surviving joint remaindermen, depending upon how the joint remainder interests were set up in the will, trust, or deed. With a life estate, there can be a single remainderman or two of more joint remaindermen. Life estates are usually created to avoid probate or for tax benefits. However, the creator of a trust may reserve a life estate for himself or, in the case of a couple, for the survivor. Most often, the life tenant is the spouse of the creator of the will or trust. The second party is the remainderman, or person with a remainder interest who is entitled to full ownership upon the death of the life tenant. The life tenant is the person who has the life estate, or entitlement to the use of property during their lifetime. When a life estate is created, it establishes two types of interest in property. A life estate may also be created by a life estate deed. A life estate is an interest in property that is created when a person making a will or trust gives another person the use of property only during the other person's lifetime. In turn, a remainderman is a person who holds a remainder interest in property.Ī will or a trust can create various types of interests in property, depending upon how the property is distributed. The remainder interest can be created by a will, a trust agreement, or a deed. A remainder interest in property is the value or portion of the property inherited by an individual after the death of another heir. ![]() Whether you are creating an estate plan or will inherit property upon the death of a life tenant, you should understand the rights and responsibilities of a remainderman. ![]()
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