Life Estate and Remainderman Interest

[BFLA]

What rights do I have against tenants whom she has leased the property to? If she potentially has a multi year lease agreement are my only rights the rights of income once the Life tenancy ends or can I take physical possession from the renters at any time. If I continue to rent out the house and the FMV at my fathers death was $300,000 (presumingly my basis) and at time the life tenancy expires and turned over to me the FMV is $1,000,000 can I only depreciate the value at his death 100K house verses land 200K.

Thank you for your response!

 

[pg1067]

My Father passed away years ago and his brief marriage resulted under Florida law the creation of a Life Estate of his house to his wife.

When did your father die (month and year will suffice)? When did he and his wife marry? What was the reason for the creation of the life estate?

What rights do I have against tenants whom she has leased the property to?

The remainderman has no present rights in the property, and, generally, their only recourse against the life tenant is for waste. Whether, under FL law, the remainderman would also have the right to pursue a tenant of the life tenant is something you'd have to pay an attorney to research.

If she potentially has a multi year lease agreement are my only rights the rights of income once the Life tenancy ends or can I take physical possession from the renters at any time.

My best educated guess is that, since the life tenant cannot convey a greater interest than she has, any lease would terminate upon the death of the life tenant. Again, this is something you'd have to pay an attorney to research.

I'll leave your tax questions for others to address.

 

[flyingron]

I agree with PG on the points made.

I have some questions. You use the words "remainderman" and "inherit" and these are really not compatible. Are you now the owner of the property (subject to the wife's life interest), or are you just expecting that the property will become yours through some estate action?

If you really have a life estate and you are the remainderman, then you get a step up when the life estate ends. If you have some other mechanism in play, you are right that it likely got stepped up when your father died and will not do so again.