Detailed Answer
Under Rhode Island law, a life estate grants a lifetime beneficiary (also called a life tenant) the right to possess, use, and enjoy property for the duration of the beneficiary’s life. The life tenant can live in the property, rent it out, and collect income generated by it. However, the life tenant must avoid waste and maintain the property in reasonable condition. They may make ordinary repairs and pay property taxes but cannot commit acts that significantly diminish the value of the property.
The rules governing life estates appear in R.I. Gen. Laws §34-1-5. See R.I. Gen. Laws §34-1-5. This statute defines an estate for life and explains the life tenant’s rights and duties.
At the end of the life tenant’s interest—typically at the life tenant’s death—the property interest passes to the remainderman or reversioner. A remainderman holds a future interest created when the property owner uses a will or deed to specify who receives the property after the life estate ends.
Determining a Remainder Interest
When a will designates a remainderman, Rhode Island law treats the remainder interest as either vested or contingent. Under R.I. Gen. Laws §34-8-1 (R.I. Gen. Laws §34-8-1), a remainder vests if the remainderman is an ascertained person and no condition precedes possession. A remainder remains contingent if the remainderman is unascertained or must satisfy a condition before taking possession.
For example, in a will stating, “To my wife for life, then to my granddaughter if she graduates college,” the granddaughter’s remainder is contingent upon graduation. If the will instead says, “To my wife for life, then to my granddaughter,” the granddaughter has a vested remainder that will pass automatically at the wife’s death.
Helpful Hints
- Review the will or deed language carefully to identify any conditions affecting the remainderman’s interest.
- Understand that a life tenant cannot sell the property fee simple; they can only sell their life interest, which often has reduced value.
- Consult a probate or real estate attorney early to clarify complex estate language and ensure proper transfer.
- Monitor property tax obligations and routine maintenance to avoid waste or liens against the estate.
- Record any deed creating a life estate and remainder interest in county land records to provide notice to future buyers and creditors.