Legal Question in Wills and Trusts in New York

NY Life Estates

A property deed is signed by three parties, A, B, and C and C has reserved a life estate for himself.

C has been receiving monthly installments for a period of approximately 10 years.

The property was just sold- and paid in full- during C's lifetime. The sum of approx. 66K is being held in escrow in NY.

The question is this: Can parties A and B claim a portion of the money that is held in escrow? More specifically, can A & B together ask for two thirds of the amount being held in escrow and/or negotiate for an equitable sum?

What is the NY law with regard to this issue?

Thank you in advance for considering a response to this question. A quick reply is most appreciated.


Asked on 7/14/99, 1:49 pm

1 Answer from Attorneys
Stuart Williams

Re: NY Life Estates

Don't know NY law specifically, but I know MA law. I think the way to divide up the proceeds is based on the life expectancy of C. There are IRS tables (Sec. 7520, I think; I have them, anyway, in Excel spreadsheets) which provide a ratio for what portion a life estate is worth compared to a remainder interest and that ratio should be the basis for dividing the proceeds between C and the others, I think.

Why is it in escrow, anyway? Because A, B, and C hadn't made an agreement yet?

You can contact me directly for more info or help.

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Answered on 7/20/99, 12:02 am


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