Legal Question in Real Estate Law in Wisconsin

Re: life estate

In order for the world to be put on notice of the existence of the life estate the document that creates it should be recorded in the office of the register of deeds in the county in which the life estate is located. The document must meet all recording requirements and you must also file a Transfer Return before it can be recorded.

Care must be taken when granting life estates. Granting a life estate is irrevocable and they have significant consequences, often unintended, and usually there is insufficient detail about who is responsible to do what and pay for what as between the holder of the life estate and the remainderman (the person(s) who get the property when the life estate ends.)

Life estates are useful in estate/medicaid planning. However, granting or retaining a life estate may have gift, estate, income tax and other consequences beyond the scope of this answer. Anyone considering retaining or granting a life estate should consult an attorney and financial advisor before proceeding.

Here is a partial list of issues that you may want to ask your attorney about.

* If you give someone (or receive) a life estate, does the life tenant have the right to move out and rent it to someone else for income?

* What rights in the property does the owner of the property have after they give a life estate to someone?

* Are there any tax benefits/consequences to creating the life estate?

* How do you create a life estate and get the results that you intended?