How a Life Estate Affects Property Taxes and Capital Gains for Remaindermen
A life estate is a legal arrangement that allows someone to live in and use a property for the rest of their life while specifying who will inherit the property after their passing, known as the remaindermen. Understanding how a life estate impacts property taxes and capital gains for the remaindermen is crucial for those involved in this type of property ownership. Here’s a comprehensive guide on the topic.
What is a Life Estate?
A life estate is a type of ownership interest in real property that grants an individual, known as the life tenant, the right to possess, use, and enjoy the property during their lifetime. Upon the death of the life tenant, ownership of the property passes to the remaindermen, who have a future interest in the property. This arrangement provides certain benefits and implications for both parties involved.
Property Taxes and Life Estates
In the case of …
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