Detailed Answer
Under New Hampshire law, a life estate gives the life tenant (sometimes called a lifetime beneficiary) the right to possess, use, and enjoy real property for the duration of that person’s life. The life tenant may live on the property, collect reasonable rents, and make ordinary repairs. They must not commit waste by allowing the property to deteriorate or by making substantial alterations without permission from those holding the future interest.
When a will creates a life estate, the testator often names a remainderman to receive full ownership after the life tenant dies. That remainder interest vests at the moment the testator dies, subject to the life tenant’s rights during his or her lifetime. The remainderman cannot take possession or sell the property until the life tenant’s death, but the interest is secure and will pass under the will without further probate action.
New Hampshire recognizes these arrangements under RSA Chapter 551, which governs testamentary dispositions. See RSA 551:1 for general rules on devising property. The vesting of remainder interests follows common-law principles adopted in New Hampshire and confirmed by case law.
Key Rights of a Life Tenant
- Possession and occupancy of the property during their lifetime.
- Collection of ordinary rents and profits from leasing to tenants.
- Obligation to pay property taxes, insurance, and make routine maintenance.
- Prohibition against committing voluntary or permissive waste (major alterations or neglect).
Determining the Remainder Interest
- Remainder vests at the testator’s death under the will, subject to any conditions or survivorship requirements.
- Remainderman holds a future interest until the life tenant dies, at which point full ownership automatically transfers.
- If the life tenant renounces the life estate, the remainder may vest earlier, depending on the will’s terms.
- Disputes over waste or boundary issues may require probate court intervention in the county where the property lies.
Statutory References
- RSA 551:16 — Rules for devising real and personal property (RSA 551:1).
- RSA 551:11 — Vesting and distribution of testamentary gifts (RSA 551:11).
Helpful Hints
- Review the will carefully to understand any conditions attached to the life estate or remainder interest.
- Maintain property insurance and pay taxes promptly to avoid claims against the property.
- Document all repairs and maintenance to show the life tenant met obligations and avoid waste claims.
- If confusion arises, consult a New Hampshire probate attorney to clarify rights and responsibilities.
- Consider mediation if disagreements occur between life tenant and remainderman to reduce legal costs.