Legal Question in Wills and Trusts in Maine
When does interest in a Life Estate become a personnel asset for a remainder.
My parents desire to create a Life Estate for their property in Massachusetts with my sister and I named as the remainders of the estate.
MY QUESTIONs are: When does the interest in this estate become a personnel property asset for net worth reporting???
Does it become an asset upon the creation of the Life Estate, or upon maturity which I belive in MASS. is 3 years, or upon taking possesion upon the passing of my parents??
1 Answer from Attorneys
Re: When does interest in a Life Estate become a personnel asset for a remainder.
The remainder interest is an immediate asset to the remainderman. However, the valuation of that asset is mostly theoretical until such time as the life tenants pass away since it is then that the remainder interest merges with the right of possession. It would be disclosed as a present asset but without a determined value. It is possible to sell a remainder interest but they are not worth much on the open market.
I am unclear as to which 3 year rule you are referring to in Massachusetts, but I would be happy to discuss further if you wish to call me.
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