is the life estate tenant responsible for paying the homeowners insurance premium? Additioally, can a life tenant sell his life estate to the remainderman? How do you determine the value of a life estate?
Answer
The life tenant is generally responsible for maintaining the property as long as he or she resides there. That includes taxes, maintenance and insurance.
Yes, the life tenant can sell his life estate to the remainderman. Has the property been appraised by anyone? What is your life expectancy? A life estate for a 90 year old would not be worth much; but a life estate for a 20 year old would be worth more. Also, is the property mortgaged or is it owned free and clear?
You will need an appraiser, an actuary (or actuarial tables) and a real estate attorney.
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