Legal Question in Wills and Trusts in New Jersey

Re: Estate Home Sale

Well, now you have heard from three attorneys. I have read what they wrote, and I agree that it is going to be a bit of a mess.

If you would like me to assist you, see if there is some way around this mess without giving her the house for one third of the real value, then contact me. There may be some options, depending on what the documents actually say.

If you would like, give me a call; I am in Hackensack (northern New Jersey, and about 3 miles from Passaic County, where I practiced law for 13 years). I will be happy to discuss this with you; a brief telephone consultation will be free.

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Re: Estate Home Sale

Both prior writers provide correct information, and having this issue recently, let me elaborate. If you were to attempt to sell your interest to a third party, they could not occupy due to the life estate, so you would have to terminate it by purchase. This is why Ron and your attorney agree the sale is discounted. However, the life estate, preseuming occupancy by the life tenant, might be terminated by failure to occupy. This places some onus on the life tenant to actually occupy, to preserve the interest. Not having read the Will, what, if any, conditions are imposed on the life tenant to preserve her interest. For example, does she actually have to occupy? What carrying costs, if any, is she responsible for, such as taxes, insurance, utilities, repairs and maintenance? Is anything said about major repairs such as a new roof, heating and air conditioning systems, etc., that may outlast her life expectancy? A properly drawn Will would have covered these matters, aside from saying she just has a life estate. If the Will is silent, she does have obligations that, as in my case, may lead to a compromise as to the amount of the discount if she were to buy. These are several issues that I have raised that come into play in making some final determination. Contact me directly if you have any questions.

Re: Estate Home Sale

I suppose the theory is that the life estate prevents you from enjoying your share of the property for the remainder of the woman' life. Therefore what you own should be discounted for that period of time. The problem with discounting is that real estate appreciates over time.

Since the will talks about the price being 1/2 the average of 3 appraisals of the total value, without reducing the price it is pretty clear that your Aunt felt the price should not be discounted.

Having said this, if the woman has a life estate, she does not have to buy the other half. She could simply move in and live there for the rest of her life. Of course, she will never be able to sell the house without your consent.

You do not have to sell her the 1/2 remainder interest in the house for less than the option price. However she does not have to buy remainder interest in the house. If you want to get any money before this woman dies, you are going to have to negotiate.

Re: Estate Home Sale

Your lawyer is right! Your interest is reduced by the value of the life estate.

Ron Cappuccio

www.SaveYourEstate.com