Life Estate -> One Different Owner

[gregmarietta]

Georgia -- Mom "A" buys house and puts it into Daughter's "B" name. "A" then wants to change her mind and put the house into Son's "C" name. "B" says no, and then creates a life estate for "A" to live in until death. "A" is still not happy and wants "C" to own the house. Suggestions?

 

[nextwife]

Legally, the house IS already transferred. Mom has no say about OWNERSHIP.

However, if it were me, and I didn't want my mom fretting the rest of her days and feeling guilty about giving the house to only one of her kids, I'd offer to add my brother to title with me. Then she could leave the issue behind. But that's a "how to handle mom" answer, not a legal one.

 

[tranquility]

How much do you want to bet "C" also goes by the first initial "g"?

 

[gregmarietta]

sister won't release and control unless she is given money. of course mom doesn't think that is fair. sister is adament. so mom is going to take out a mortgage to get control of the house again, that is really hers anyway.

 

[nextwife]

WHY do so many people go around quit claiming their interests in real estate without FIRST considering the long term implications? A QC deed is NOT like a purchase at TJ Maxx, that you can just reverse if you de3cide a few days later you don't want it anymore.

So why is sonny ALLOWING mom to get stuck with a mortgage? Mom made a mistake, mom can fix things by giving son some OTHER asset instead of the partial interest in the RE. And if she can't, it's still not fair to mom. I'd sure never let my mom get stuck with a mortgage just so I can get half her house free.

 

[FlyingRon]

Greg would be a funny name for a daughter. Maybe her intial is M?

Transferring property while still alive is a terrible idea. In addition to the fact that things might change (what if Daughter #1 had died before the mom, etc...) it is awful for the daughter taxwise. The best thing would have been either to will it or put it in a living trust to with instructions as to handle the disposition after mom's death.

 

[tranquility]

All mom owns right now is a life estate. It is very hard to get a "mortgage" on a life estate. It's not legally prohibited, but what kind of security is that for a bank? As soon as the measuring life (mom?) ends, the reversion of possessory right goes back to the legal owner (sister).

So, mom is going to buy her property back from sister. Give the sister some amount sister and mom deem fair. The basis will be that amount (Although you could argue a little more because the gift of the property and the re-gift back of the life estate.) and there will be a loan outstanding for that amount. When the property passes it will be subject to the loan. If the property is gifted to C the mom will have to pay back the loan immediately.

 

[seniorjudge]

sister won't release and control unless she is given money. of course mom doesn't think that is fair. sister is adament. so mom is going to take out a mortgage to get control of the house again, that is really hers anyway.

That does not work; ma can't take out a mortgage. It's not her property.

 

[gregmarietta]

the problem is that mom was tricked into the life estate thinking she was just getting her property back into her name. so now she wants son to own it and the sister to get some money to make everybody happy.

 

[seniorjudge]

the problem is that mom was tricked into the life estate thinking she was just getting her property back into her name. so now she wants son to own it and the sister to get some money to make everybody happy.

And just how will you prove you were tricked, since you put in writing what your intentions were?

 

[gregmarietta]

no way to prove the trickery. purpose of this thread was to understand how the life estate works. the mom wants to put her last days and burial up to the son. so in order for the son to take command the sister has to get money. crazy family stuff that doesn't make sense.

 

[tranquility]

It is unlikely mom was "tricked" into getting the gift of a life estate from sister. The property is presumptively the SISTER'S property when mom just put the deed in sister's name. Sister gave a gift to mom in allowing her to live there all the rest of her life. The only thing mom owns (Unless she can overcome the presumption--which she cannot because there is no writing.) is the right to possess the property during her life. That's what a life estate is.

If mom wants to buy the property from sister, she can do so. If sister wants to give the property back to mother, she can do so. In either case, sister has to agree. There is NO WAY to FORCE sister to do anything no matter how you word things.

 

[nextwife]

no way to prove the trickery. purpose of this thread was to understand how the life estate works. the mom wants to put her last days and burial up to the son. so in order for the son to take command the sister has to get money. crazy family stuff that doesn't make sense.

Mom can pre-purchase and preplan her funeral. That can be done now. Neither sibling needs to do any of it. Mom can arrange it all and simply hand them an envelope telling them WHERE to go.

WHY don't people RESEARCH their options before just doing this crap. I keep reading these "A deeding to B" schemes and can't believe people think they can just reverse these things!

 

[gregmarietta]

1. mom buys house outright 2. puts house in sister's name because she thought it would be best. 3. everyone undestood that the house was unofficially mom's. 4. mom and sister had a fight. 5. mom wants house back in her name and sister says no. 6. then on day sister says okay. 7. mom and sister sign the life estate and mom says she did not know what she was signing. 8. son comes into the picture.

 

[gregmarietta]

yes, i think the funeral is going to be pre-planned now.