Detailed Answer
Under Wyoming law, a life estate grants a person (the life tenant) a present, possessory interest in property for the duration of their life. A life tenant may occupy the property, collect rents or profits, and make ordinary repairs. They must not commit waste—meaning they cannot strip resources, permit significant deterioration, or misuse the asset. The life tenant cannot sell the estate in fee simple, encumber it beyond their life interest, or bequeath it by will. When the life tenant dies, the estate automatically passes to the remainderman.
A remainder interest is a future interest created by will or deed that becomes possessory upon the natural termination of the life estate. To determine the remainder interest, examine the will’s language: if the testator names a beneficiary by name or as a defined class without conditions, the remainder vests immediately at the life tenant’s death. If the testator ties the gift to a condition—such as “my grandchildren who reach age 25”—the remainder remains contingent until the condition is met. If no one qualifies under the terms at the end of the life estate, the property either reverts to the testator’s residual estate or passes by intestacy.
Key definitions under Wyoming’s statutes include:
- Wyo. Stat. § 2-1-202 (2021) – Definition and rights of a life tenant
- Wyo. Stat. § 2-1-209 (2021) – Nature of remainder interests
Helpful Hints
- Review the will’s exact wording to identify whether the remainder interest is vested or contingent.
- Advise life tenants on routine maintenance duties to avoid claims of waste.
- Confirm that the remainderman’s identity or class is clear to prevent disputes after the life tenant’s death.
- Consider using a trust if you want more flexible or managed distributions to life tenants and remaindermen.
- When drafting or reviewing a will, explicitly state whether conditions apply to future interests.
- Consult a local attorney to ensure compliance with Wyoming’s procedural rules when transferring life estates or remainder interests.