Legal Question in Wills and Trusts in North Carolina

I don't get why your uncle was paying property taxes. If he did not inherit the land then he should not be paying. The person who has lifetime rights should be paying and if the lifetime tenant does not pay then the remaindermen (here the grandchildren) can bring an action for waste against the lifetime tenant.

What interest does your uncle have if the property was left to the grandmother's living son?

Or is the uncle the only living son? Your post is not clear.

Since grandmother died several years ago, I assume the time for renouncing any interest is over. If that is the case and we are only talking about land, the proper thing is that the uncle sign a quitclaim deed deeding his interest in the land to the grandchildren. If the uncle is the same as the person having lifetime rights, then the uncle's conveyance of his share will extinguish the life estate and the grandchildren will solely own the land.

If we are talking about money, I don't get how a person can have a life estate in money, but your uncle would just make gifts to the grandchildren. He needs to see his CPA but he can make gifts of about $13,000 to any one person. If there are 3 grandchildren then he can gift up to $39,000 total to all of you without tax penalty.

I don't know what the land and houses are worth or what the life estate/remainder interests are valued at. There may be gift tax consequences if uncle relinquishes his life estate now, assuming he is the lifetime tenant.

And if the uncle is the life time tenant, then why is seeking reimbursement from "the estate" for taxes? The lifetime tenant inherits the land and has to pay the taxes. The estate is not liable for this. And the estate for your grandmother should have been wrapped up a long long time ago. Most estate administrations are completed in 1-2 years.

It sounds like both your uncle and his lawyer had no idea what they were doing. I suggest that you get a copy of the estate file where the estate was probated and pay a lawyer to review it and make sure that things have been don e properly and the estate is closed.

You will need to see a probate lawyer who practices in the county/state where the estate is pending or where your grandmother lived at the time of her death (should be where she owned her primary residence).

My answer is generally premised on NC law. If the estate is elsewhere, you need to go by the estate laws of that state.

Only need Deed of Life Estate to Grandkids