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CAN A LIFE ESTATE OWNER RENT THE PROPERTY. TEXAS. In Texas,

Customer Question
CAN A LIFE ESTATE...

CAN A LIFE ESTATE OWNER RENT THE PROPERTY

Accountant's Assistant: Because laws vary from place to place, can you tell me what state the property is in?

TEXAS

Accountant's Assistant: Has anything been filed or reported?

No

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

In Texas, can I defer the annual taxes (at 8%) and have the remainerman pay 1/2 of taxes at closing?

Submitted: 11 months ago.Category: Tax
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Answered in 2 minutes by:
9/6/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,901
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi My name’s Lane - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago

A life estate is an ownership interest in a piece of property,that lasts for the life of a named person, but ends on that person’s death.

...

The person that holds a life estate (the life tenant), has the right to do anything with the property that a full owner could do during his or her life. He or she need not live in the property and use it as his or her home, but can rent it out full or part time or even sell the life interest in the property.

...

The rental \ can’t be for a time longer than the life of the life tenant, since the life tenant only owns an interest during his or her life.

...

The holder of the life estate is responsible for paying all taxes, maintaining the property in good repair, and not permitting it to suffer any "waste" or other damage. As long as the life tenant fulfills these duties, the remaindermen have no cause of action BUT cannot be made to pay taxes or bear any burden of ownership OTHER than the requirement that both life tenant AND remaindermen must all agree to any sale.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago

Should have said " both life tenant AND remaindermen must all agree to any [outright] sale of the property. The life tenant CAN sell his/her life interest.

...

.

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will compensate me for the work here.

Thanks,

Lane

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago

Hi, Lane here again.

...

I’m just checking back in to see how things are going.

...

Did my answer help?

...

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating, using the stars or faces on your screen, and then clicking “submit" – You may need to scroll up to see the stars.

...

But if you need more on this, please let me know.

Lane

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