Estate planning is difficult, and there are numerous ways to protect your assets after death. One option is to create a life estate for the person you want to live there for the rest of their life. If you expect to inherit property or you intend to reserve a life estate in the property, there are certain things that you need to know. One of them is the role of a remainderman. Talk to an estate planning attorney today to learn about Wills and Trusts and more.
What is a remainderman?
Whether you are putting together an estate plan or will inherit real estate upon the death of a life tenant, you should be aware of the rights and duties of a remainderman. A remainderman is a term in property law that refers to the person who inherits or is qualified to inherit property after the former owner’s life estate terminates.
A life estate is an arrangement in which a person’s property ownership lasts for the rest of the person’s life and is subsequently handed back to the original owner or a third party. The remainderman is the individual to whom the property ownership is passed. A remainderman receives the principal remaining in a trust. However, this transaction occurs only once all essential payments, such as expenses, have been made.
The rights of a remainderman
A complex element with life estate deeds, particularly in property deals, is that the life tenant and the remainderman have ownership interests, although having different rights of possession. The life tenant is the estate’s owner until their death.
However, while the life tenant is alive, the remainderman has an ownership interest in the estate. They have an interest in ensuring that the life tenant does not cause harm to the property, reduce its value, encumber it, or try to sell it. The life tenant may sell the property with the approval and involvement of the remainderman. Nonetheless, depending on the life tenant’s age and life expectancy, the remainderman may be entitled to a higher percentage of the earnings.
Expectations of a remainderman
Responsibilities for a remainderman are generally low. A remainderman may have rights, such as a potentially bigger interest in the sale revenues or the right not to have the property harmed. However, a remainderman’s role is limited until they become the proper owner of the property upon the death of the life tenant.
Speak to an estate planning attorney today.
If you have any questions regarding estate planning, it is best to talk directly to a professional. An experienced estate planning attorney can help you, so schedule an appointment today.