Understanding Life Estate Rights and Remainder Interests in North Dakota
Detailed Answer
1. Rights of the Life Tenant
Under North Dakota law, a life estate grants a person (the life tenant) the right to possess, use, and benefit from real property for the duration of a specified life (usually the tenant’s own). The life tenant may:
- Live in, rent out, or farm the property and keep all generated income.
- Make ordinary repairs and maintain the property in its current condition.
- Sell or mortgage only their life interest—not the fee simple—unless a remainderman joins and consents.
However, the life tenant cannot commit “waste.” They must avoid actions that significantly damage or devalue the estate. See North Dakota Century Code § 47-22-01 for statutory guidance: NDCC 47-22-01.
2. Determining the Remainder Interest
A remainder interest is a future interest created at the time of the grant or will. A remainder interest holder (remainderman) gains full ownership when the life estate ends (upon the life tenant’s death or another measuring life’s end).
To determine who holds a remainder interest in a will designating a remainderman:
- Examine the will’s language. It must clearly state: “to [Life Tenant] for life, then to [Remainderman].”
- Verify the remainderman is identifiable at the time of will execution.
- Confirm no conflicting gifts or conditions override the remainder clause.
- Check for statutory or residuary gifts that could absorb the remainder.
Once the life estate ends, North Dakota Century Code § 47-22-03 recognizes the remainderman’s right to possession: NDCC 47-22-03. The remainderman may take title without further Probate Court approval, subject to outstanding encumbrances or liens.
Helpful Hints
- Review the deed or will carefully. Ambiguous language may trigger litigation.
- Keep records of rents and expenses to prevent waste claims.
- Coordinate with remaindermen before selling or mortgaging the life interest.
- Consult a qualified real estate attorney to draft clear life estate and remainder provisions.
- Check for property tax obligations. Life tenants often pay taxes, but statutes vary.