Legal Question in Wills and Trusts in Indiana

Re: Building a house on land you don't own

Under the law, a will is not a final and enforceable document until someone has died. It is an executory document and of no effect until death. Hence, your friend's concerns are somewhat premature as to what she will or will not inherit under a will that does not seem to have even been prepared yet. Even had it been prepared, it is a private document that her father does not have to discuss with her in advance, nor does he have to consult her or anyone else who might inherit about what they want his will to say.

Having said that, depending upon what the actual terms are at the time of death and who inherits under a decedent's will, the family and/or the devisees (those who are specifically mentioned in the will as inheriting something) are free to make a "family settlement" different from the will if it is more suitable to them.

If Lisa is given a life estate in the real estate, she is generally free to build on it, lease it out, do whatever she wants to do with it during her lifetime, including selling it. If she wants to sell it, the remaiderman must also consent and or she is selling only her life estate. That is generally considered unmarketable and the entire estate is usually sold and the proceeds divided up between the life tenant and the remainderman based on life expectancy tables.

If the will ultimately gives her a lifetime right in the house only, the situation would be different and she could not benefit from the surrounding land, although she would have the right to remodel the house. I doubt that any estate her father would give her would be for the house alone.

You mentioned that you thought the remainderman might be the City where she lives. Her rights would be the same regardless who the remainderman is. However, a municipal entity may be more difficult to work with than an individual or vice versa.

If, for instance, the house or land has historic value, then there may be other considerations to be dealt with in terms of use of the property. But, of course, this is only speculation on my part.

Until her father dies, Lisa has nothing to be concerned about. She has the right when the time comes to even say she does not want to take under the will (although she probably cannot take outside the will) and refuse her inheritance if she believes it is too much of a burden to her at the time.