Detailed Answer
What Is a Life Estate?
A life estate gives a person (the life tenant) the right to use, occupy, and enjoy real property for the duration of his or her lifetime. Under Maine Revised Statutes Title 33, Chapter 15, §1501, a life estate is defined as an interest measured by the life of a designated individual.
Rights and Duties of the Life Tenant
During the life tenant’s lifetime, Maine law permits the following:
- Possession and occupancy of the property.
- Rental or leasing for income.
- Harvest of natural resources (e.g., crops) under ordinary use.
The life tenant must not commit waste. 33 MRS §1901 prohibits voluntary or permissive waste. Under 33 MRS §1907, the life tenant must maintain the property through ordinary repairs and pay property taxes and insurance premiums.
Determining Remainder Interests in a Will
When a will grants a life estate, it often designates a remainderman to receive full ownership after the life tenant’s death. Maine law recognizes two main types of remainders:
- Vested remainder: The beneficiary is identified and no conditions must occur before inheritance takes effect. See 33 MRS §1503.
- Contingent remainder: The interest depends on a condition precedent (e.g., reaching a certain age) or the beneficiary is not yet ascertained. See 33 MRS §1502.
To determine the remainder interest, courts interpret the testator’s language. Clear identification of the remainderman and any conditions reduces disputes. If ambiguity arises, Maine applies the rule against perpetuities under 33 MRS §1505 and other interpretive guidelines in Chapter 15.
Helpful Hints
- Define “life tenant” and “remainderman” clearly in your will.
- Include maintenance and tax-payment obligations for the life tenant to prevent waste claims.
- Specify any conditions for a contingent remainder (for example, age requirements).
- Assess the impact of a life estate on Medicaid eligibility and estate taxes.
- Consider consulting an estate planning attorney to ensure compliance with Maine statutes.