Life Estate Remainderman Tax. When you create a life estate in property you usually retain the ability to use the property for your life. What happens when a remainderman dies before the life estate holder.
She can continue to live in her home for the remainder of her life if she chooses to and is responsible for making property tax and insurance payments. The second tax is the gift tax, which is lower than the estate or inheritance tax. This means that if the property is valued at more than $14,000, a gift tax must be paid.
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Life tenant has passed away: Since the person who keeps the life estate still has interest in the property, the remainder of her property interest passes to the person receiving the property on the life estate deed. In that instance, the intent of the person creating the life estate/remainder arrangement is to effectively use. Gift tax consequences of life estates.
