Legal Question in Wills and Trusts in California
Life estate holder (stepfather) can't afford mortgage after this year and trustee (moms friend) is telling us we might have to sell the home my mom wanted me to have after he passes away I'm the remainderman so he can have more money to live off of .Is this legal to do?
4 Answers from Attorneys
It all depends on what the Trust says. It may allow this. You really need to see an attorney to find this out before any sale is attempted. Then you can plan for alternatives.
Ordinarily, the life estate holder (your step-father) would be responsible for maintaining the property (taxes, insurance, etc...) and by failing to do so he violates his responsibility as a life tenant and can be removed, meaning that you, as the remainder holder, would take the property now. However, your question refers to a trustee and so it really will depend on how the trust is worded. Some trusts allow for the sale of a family home and purchase of replacement housing. Other trusts allow for the sale and use of the proceeds by the life estate person under certain circumstances or conditions. It sounds like the trust has money through this year, so you have a little bit of time to try to sort this out. You need to consult with an attorney who can review the specific documents and present your legal position to the trustee.
This question doesn't make sense. In a true life estate, when the life tenant sells, he can only sell his interest, and the party that buys his interest only holds the property for the life of the life tenant. The remainderman doesn't lose his interest.
The question does not make sense because it also mentions a trust. Does the trust set up a life estate in the event of someone's death, or as a distribution? I think an attorney would have to review this in depth to give you a definitive answer.
What is a trustee doing involved in a life estate at all. It makes no sense.