I passed this sign today and have been wondering what the deal is.
Kind of odd. I certainly get the life estate within a family, but I've never come across one an open market.
I might have to call and find out.
At first glance it does seem a bit contrary to what is commonly considered a life estate. But there are several scenarios that could make it legitimate. Let's say a trust owns everything except Uncle Charlie's 10 acres and house. Uncle Charlie created a life estate so he could stay in the house until his demise. By contract, at the time of his demise the trust would absorb his 10 acres.
Let's say he's not dying fast enough and the trust wants to liquidate their claim for quick cash. Let the next guy wait out Uncle Charlie....I suppose they could sell any RTI they may have.
I am pretty certain that an attorney can argue that a life can not be transferred.
o.O
> I am pretty certain that an attorney can argue that a life can not be transferred.
It would seem so:
"Because a life estate ceases to exist at the death of the measuring person's life, the life tenant, a temporary owner, may short-term let but cannot sell, gift or bequeath the property indefinitely . . ."
Aparently "renting" the estate is doable, but no title transfers.
Three possible interpretations:
1. Paden's scenario sounds more likely - They own the residual interest that will come to them when the estate owner dies and want to sell that interest. They get the money now, and the buyer has a long-term investment for later development.
2. Or maybe they own the property outright and want to sell off an interest to raise money to someone who will use the property for a while, with it reverting back to the family later. Effectively a lump-sum rental for the rest of the user's life, in a nice vacation spot.
3. I doubt the owner of the life estate is trying to sell his interest. Who would buy it if it could suddenly terminate on another person's death?
One heck of a coinkydink
I don't believe I had ever contemplated how one might sell a life estate in property until seeing the post opening this thread. A few minutes ago while reading a weekly paper from a small county seat town in Oklahoma I saw this ad in the classified section. (Telephone number intentionally altered)
FOR SALE: Life estate in property; 200 Texas, Weatherford, OK, call 111-111-1111
How about that?!
Hot off the press...
Freda A. Polton left a lot in Greenwood to her children, Peavler, Robert E. Mason,and Cathy H. Marvel. An executor’s deed dated May 1993 indicates that Mason was to receive a life estate, and the property would then revert to Peavler and Marvel at Mason’s death.
In January 1994, Marvel conveyed her interest in the property to Peavler.
A July 2002 warranty deed from Mason purported to convey fee-simple title in the land to Larry and Andrea Gaston.
DDSM;-)
