Legal Question in Real Estate Law in Maryland

Life Estate and Realty Trust - owner deceased

A son is living in a house his parents have set up as a life estate. The son gets 5 yrs behind in property taxes and then suddenly passes away. The trust does not want to pay the back taxes. What happens to the property? Also, the son owned a small home used as a rental property. For this he set up a Realy Trust. Also on this property he failed to pay taxes for a few years. What becomes of this property?


Asked on 8/18/08, 10:23 pm

3 Answers from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

: Life Estate and Realty Trust - owner deceased

There is tax exposure for each property.

It is unclear who is responsible for these costs. Even if he was, as a practical matter, it is better to pay, then have the town place a lien, and foreclose.

With more data, I could have a better sense.

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Answered on 8/19/08, 4:07 am
Warren Wood Law Offices of Warren Wood

Re: Life Estate and Realty Trust - owner deceased

Both properties are subject to forfeiture by tax sale if the taxes are not paid in a timely fashion (see relevent tax redemption law) and the properties redeemed.

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Answered on 8/19/08, 9:07 am

Re: Life Estate and Realty Trust - owner deceased

The property will eventually be taken by tax title and sold to the highest bidder. The reality trust should either pay the taxes or try to sell the property before it is taken for tax title and sold.

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Answered on 8/19/08, 11:08 am


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