Detailed Answer
1. Rights of a Life Estate Beneficiary in Missouri
Under Missouri law, a life estate grants a person (the life tenant) the right to possess, use and enjoy real property for the duration of that person’s life. The life tenant may collect rents, receive income and occupy the property without interference from future interest holders. These rights arise from Mo. Rev. Stat. § 456.010, which allows a grantor or testator to create any estate in real property, including a life estate. Mo. Rev. Stat. § 456.010
However, the life tenant must:
- Maintain the property in reasonably good repair.
- Pay property taxes, assessments and necessary insurance.
- Avoid waste (no willful or negligent destruction or devaluation of the property).
If a life tenant commits waste, a remainderman (future interest holder) may bring an action to recover damages or seek injunctive relief.
2. Determining a Remainder Interest Under a Missouri Will
A remainder interest is a future interest that becomes possessory when the life estate ends (usually upon the death of the life tenant). Missouri law recognizes both vested and contingent remainders under Mo. Rev. Stat. § 456.011, which permits wills to create successive estates and remainders. Mo. Rev. Stat. § 456.011
- Vested remainder: The remainderman is identified and entitled to the property at the end of the life estate, with no additional conditions.
- Contingent remainder: The interest depends on a condition precedent (for example, “to A for life, then to B if B graduates college”). If the condition fails, the remainder does not vest.
If a contingent remainder fails to vest, the property may pass according to residual clauses in the will or by Missouri’s intestacy rules.
Helpful Hints
- Carefully review the will’s language to classify the remainder as vested or contingent.
- Keep detailed records of property expenses and income during the life estate.
- Obtain a professional appraisal to determine the fair market value and rental value of the property.
- Consult a Missouri probate or real estate attorney if disagreements arise between life tenant and remainderman.
- Understand that failure to pay taxes or perform maintenance may reduce the value of both the life estate and the remainder interest.