Legal Question in Wills and Trusts in Maine

If your nephew has a life estate, then he can live there as long as he chooses. However, unless the will or trust document that created the life estate indicated otherwise, he is not entitled to any of the income from the sale of the house if he is to give up his life estate right. But you can have an agreement where he gives up his life estate in exchange for some sort of payment.

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My Answer differs from that of my colleague atty Teel insofar as you should be aware that the IRS has published a Life Estate Mortality Valuation table for its use in determing a present-day value to a life estate. It provides the basic framework for negotiating a division of sale proceeds with a life tenant. One might also want to consider any large property carrying costs and/or likely necessary improvements that the life tenant will need to pay if the property is not sold. Without knowing all factors including life tenant's age, 80% seems high.