topic Please help clarify some Life Tenant questions in Investors & landlords

Please help clarify some Life Tenant questions

bswb97 — Sat, 13 Jul 2019 21:28:30 GMT

My parents have a rental property that they are considering granting us Life Tenant status so we can let our child go to school in that district. We want to make sure we properly understand what's involved before going forward:

-As a Life Tenant, what are our rights? Is it basically like a permanent lease? Are we at risk if my parents decide to sell the home or break lease? (I'm thinking worst-case scenarios here just to fully understand our level of stability)

-Does assigning a Life Tenant do anything to the property tax base or does it remain as is?

-As a Life Tenant, is the property automatically inherited upon death or does a further transfer-upon-death deed have to be established?

-As a Life Tenant, what happens to capital gains base when it is inherited? Is it still subject to step-up benefits?

Re: Please help clarify some Life Tenant questions

Critter — Sat, 13 Jul 2019 22:21:16 GMT

Talk to a local tax attorney as there may be state or local issues to also consider.

https://homeguides.sfgate.com/life-tenant-rights-8078.html

Re: Please help clarify some Life Tenant questions

Anonymous_ — Sat, 13 Jul 2019 23:17:36 GMT

I agree 100% with @Critter; contact an attorney and/or estate planning professional.

There are far better options, for your stated purpose, than to have your parents grant you a life estate.