Detailed Answer
Under Mississippi law, a life estate grants the lifetime beneficiary (the “life tenant”) certain rights to use, possess and enjoy real property for his or her lifetime. The life tenant may:
- Occupy and live on the property.
- Collect rents, royalties or other income generated by the property, unless the will or deed limits that right.
- Lease the property for terms that end before the life tenant’s death.
- Make ordinary repairs and improvements, although material alterations typically require consent from the remainderman.
However, the life tenant must avoid committing waste. Waste includes acts that harm the property’s value, such as removing timber for sale or allowing significant disrepair. If waste occurs, a remainderman may bring a legal action to enjoin the waste or recover damages.
When a will designates a remainderman, that person holds a future interest known as a remainder interest. This interest becomes possessory upon the life tenant’s death. Mississippi treats remainders as either vested or contingent:
- Vested Remainder: The remainderman is specifically named and no condition other than the life tenant’s death stands between the remainderman and possession.
- Contingent Remainder: The remainderman’s right depends on a condition precedent (for example, a named heir surviving the life tenant). If the condition fails to occur, the property may pass under a residuary clause or by intestacy.
Mississippi law governs the conversion of certain failed contingent remainders. Under Miss. Code Ann. § 91-7-131, if a contingent remainder fails, that interest may merge into a fee simple in the remainderman or vest in another devisee. See Miss. Code Ann. § 91-7-131.
In practice, the will should clearly identify the life tenant’s rights and describe the conditions (if any) attaching to the remainder. Ambiguities often lead to litigation over waste, repairs and the validity of the remainder interest.
Helpful Hints
- Document all repairs or improvements and share records with the remainderman.
- Understand “waste” to avoid actions that may reduce property value.
- Review the will or deed for any special conditions on leasing or selling.
- Confirm whether the remainder is vested or contingent by examining the will’s language.
- Consult an attorney if disputes arise over repair costs, waste or interpretation of the remainder clause.